All Forum Posts by: Daryn Dockter

But what if I don’t want to pass anything on? Is there any way to avoid paying capital gains tax if I eventually sell? Otherwise the 1031 Exchange is worthless. It only makes sense if you plan to pass on real estate.

A 1031 Exchange only defers the capital gains tax. The capital gains just go into the next property, they don’t go away permanently. My understanding is the only way to truly avoid capital gains tax is to pass on the property to a beneficiary through a trust. But I don’t want to pass anything on. So is there any way for me to eventually sell and avoid the capital gains tax?