Rich Dad Poor Dad, Delaying Taxes?

[James Marin]

Hello everyone! Im currently reading Rich Dad Poor Dad, and there is a sentence that I need a bit of clarification on. 

"On the other hand, my real estate strategy is to start small and keep trading up for bigger properties and, therefore, delay paying taxes on the gain."

What exactly does the author mean? How does one delay paying taxes by trading up for bigger properties? 

Thanks everyone!

[Russ B.]

He's probably talking about a 1031 exchange. This is where you sell a property and buy another with the proceeds shortly after, and get to skip the capital gains tax on it. It is definitely something you'd want to do if you were "trading up". 

That said, while that is a great book to help get you thinking like an investor (at least the parts of I that I read were), I'm not sure I'd rely on it for anything beyond the most high level info on how to actually proceed. From what I have read, many of the stories in it are fiction.

There are much more detailed (and more current) books that are specific to whatever type of investing you want to do.