What is the real point of doing a 1031 exchange anyway? - Simplest explanation

[Mike Auerbach]

What is the point of doing a 1031 exchange? Here is the how I would explain it to a kindergartner:

The true power of a 1031 exchange is the ability for an investor to meet their investment objectives without losing equity to taxation.

With more money they can buy larger, multiple, or more productive properties.

What is the alternative? Paying 30-40% in taxes when they sell

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