What is a Tax-Deferred Exchange?

A Tax-Deferred Exchange allows asset holders to swap one property for another without immediate tax liabilities. By reinvesting in similar assets, capital gains taxes can be postponed.

• Defers Capital Gains Tax: Taxes apply only upon final sale.
• Strict Timelines: Replacement assets must be identified within a set period.
• Investment Growth: Funds continue compounding instead of being taxed.
• IRS-Compliant: Certain rules must be followed for eligibility.

Tax-deferred exchanges optimize long-term wealth building by deferring payments while expanding investment portfolios.