What are the benefits of exchanging v. selling?
A 1031 exchange is one of the only ways to delay or potentially eliminate taxes due on the sale of investment properties. By deferring the tax, you have more money available to invest in another property. In effect, you receive an interest free loan from the federal government, in the amount you would have paid in taxes. With a 1031 exchange you can change the shape of your investment portfolio without ever having to pay the tax.
