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SECTION 1031 of the INTERNAL REVENUE CODE:
PAY NO CAPITAL GAINS TAX THROUGH A TAX DEFFERED EXCHANGE TRANSACTION. Real Estate exchanging pertains to Section “1031” of the Internal Revenue Code. It allows individuals to “PAY NO CAPITAL GAINS TAX” when disposing of business or investment-held real estate. This tax law has been part of the Internal Revenue code since 1921.
This is the best way to not pay Capital Gains Tax on the sale of real estate!