However, using the 1031 exchange, commercial real estate investors can hold off on this so they can hold more capital to buy another property.
Another reward offered by CRE investing is the 1031 exchange. This is a tax instrument that allows the investor to defer capital gains. The IRS requires you to pay capital gains tax when an investment is sold. However, using the 1031 exchange, commercial real estate investors can hold off on this so they can hold more capital to buy another property.