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1031 Exchange Explained: How to Pay Zero Tax on Real Estate Gains

LyfeAccounting

One is just paying the capital gains tax which a lot of people do to avoid the stress of finding a property. Or, you can put your 1031 money in a Delaware Statutory Trust or “DST”. So you would report the 1031 transaction on Form 8824 and include it with your tax return. They are not to be used for your personal residence.