Taxes After Multiple 1031 Exchanges

[Tin Nacaj]

If you do 1031 exchange multiple times, do you pay taxes on the profit of only the last sold property or do you have to pay taxes on the total potential profits of all properties. For example, if I buy property #1 for 300k and sell it for 500k, creating a $200K profit. I then use 1031 exchange to reinvest that 500k and buy property #2 for 500K. If I sell property #2 for 800k, creating a 300k profit, am I only liable to pay taxes on the last 300k profit from property #2, or am I liable to pay taxes on the 200k profit from property #1 and 300k profit from property #2? 

I couldn't find a lot of useful info online. Thank you!

[Dave Foster]

@Tin Nacaj, As long as you own your replacement properties you'll never pay the tax.  

As long as any time you sell the replacement property and do another 1031 you'll never pay the tax.  

If you ever convert the property into your primary residence you'll never pay the tax.

If you die as @Randall Alan said, there is a step up in basis which means your heirs inherit tax-free.

If you ever sell without a 1031 then you will pay all of the tax that had been deferred as well as the tax on the current property.    Which is why somone came up with the cute but somewhat depressing acronym of "swap till you drop".  You really can defer forever.  You just have to keep going until you die :)