To defer capital gains taxes, consider a 721 exchange

For investors looking for a way to defer capital gains tax when selling real estate, there are a variety of strategies to exploit depending on the circumstances.

Usually a 1031 exchange comes to mind; however, an often underused tool that helps investors achieve a similar outcome is a 721 exchange, or umbrella partnership real estate investment trust (UPREIT). Both 1031 and 721 exchanges offer advantages and disadvantages, but ultimately the choice depends on the specific goals of the investor.

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