Real Estate InvestingHomebuying Glossary
1031 Exchange
Also known as Like-Kind Exchange
A tax strategy letting investors defer capital gains tax by reinvesting sale proceeds into another property.
In plain English
Named after Section 1031 of the tax code, this strategy lets an investor sell one investment property and reinvest the proceeds into a similar ("like-kind") property, deferring capital gains taxes as long as strict rules and timelines are followed.
Why it matters
This applies to investment properties, not primary residences — but it's a common term to encounter once you start exploring real estate investing.
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