1031 Exchange - Why Bother You'll have to pay taxes eventually right? - Biggest Myth

[Mike Auerbach]

There is a lot of false information out there regarding 1031 exchanges and one of them is that you'll have to pay taxes eventually. That's a myth!

If you keep rolling one 1031 exchange into another until your time on Earth is up, you will not only have deferred taxes on your gains each time, but you will have accomplished the seemingly impossible: avoiding taxes altogether. How is this? Because when your properties pass to your kin, they get a step-up in basis, effectively making a lifetime worth of gains invisible to the US Government.