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A 1031 exchange, also known as a like-kind exchange, is a tax-deferred strategy for real estate investors in the United States. It allows investors to sell a property and reinvest the proceeds in a similar property without immediately paying capital gains taxes. While it can be a powerful tool to defer taxes and grow investments, it must be executed correctly to avoid mistakes. Investors should carefully consider the rules and regulations surrounding 1031 exchanges before utilizing this strategy.

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