Alright, so imagine that you own a rental house and you have owned it for 20 years and you want to sell it. Well, guess what? You've probably earned a lot of equity and it's worth a lot of money. So when you sell it, you're going to get money.

Well, guess who wants a piece of that? The government in the form of taxes. But what if you could say, I want to defer those taxes and put it into the next property that I'm going to buy, you could do that. It's called a 10-31 exchange.

Essentially, it takes the taxes you would owe on the house that you're selling, and you put it into the house that you're buying. So let's say you have a two-bedroom rental house and you have a lot more equity and you want to trade up and you want to buy a four-bedroom house, it costs more money.

Well, instead of taking the tax hit on the first house, you just throw it into the second house and you can do this over and over and over again.

One thing about 1031 exchange is it has to be like for, so it has to be an investment property and then another investment property. It's tough to go from say, vacant land to an office building. There's a lot of other intricacies. I am not a tax expert.

It's really smart to talk with one before you make these moves just so you know what you're getting into. But it's a great idea if you're making a investment property, to know that you can keep holding on your taxes and just move it from place to place and keep making more money as you do for more information, just message us. Thanks.