<h1>Using Section 1031 to Legally Defer Taxes on Property Investments</h1>
<p>Dad, is it true you know how to make taxes disappear?</p>
<p>Absolutely!</p>
<p>Isn’t that illegal?</p>
<p>Nope, I just used <strong>Section 1031</strong> of the US tax code.</p>

<h2>Can Anyone Do This?</h2>
<p>Is this just something you know about because you're super rich?</p>
<p>Nope, anybody can do it. Just invest your money in <strong>property A</strong>, and exchange it once it appreciates in value for <strong>property B</strong>. No taxes.</p>

<h2>Reinvesting Gains</h2>
<p>Is that why you keep using the money from one investment property to invest in a bigger property in a fancier neighborhood?</p>
<p>Yep, and that’s how I’ve made taxes disappear for the last <strong>30 years</strong>.</p>

<h2>Tax Implications of Selling</h2>
<p>Yeah, but those deferred taxes will reappear when you sell the final property and don’t exchange, right?</p>
<p>Oh, that’s the best part. I die, you inherit the property. In <strong>30 years</strong> of deferred capital gain? Poof! Disappear. Magic!</p>

<h2>Stepped-Up Basis</h2>
<p>Well, that’s on a <strong>stepped-up basis</strong>.</p>

<h2>Learning Resources</h2>
<p>How did you learn about this?</p>
<p>A magician never reveals his secrets, son. Just follow <strong>Social Cap</strong>; he makes complex finance seem easy.</p>