1031 Exchange or pay the Cap Gains taxes!

[Jorge Perez]

I’m in the process of selling a commercial building and have been debating 1031 Exchanging into another asset or just paying the taxes and have huge capital in reserves and an even bigger purchasing power for the upcoming recession.

Is anyone debating these two decisions, would love to see different points of view since we are officially into one of the longest bull markets in history in the US and in many market places there are very few investments that make sense.

Thanks in advance for everyone’s insight.

For Context:

South Florida(Miami) market.

Multi family

Cap Rates

[Michael Plaks]

@Jorge Perez

Consider the 3rd option: Qualified Opportunity Zone funds. You can pocket the return of principal as capital reserve and roll capital gains into a QOZ fund, deferring taxes and opening the door to huge tax benefits long-term.