Key Takeaways: Commercial real estate offers investors the potential for significant returns on investment (ROI) while generating steady cash flow. However, capital gains taxes on the sale of an appreciated property can eat into those profits. A 1031 exchange provides a powerful strategy for investors to defer these taxes and reinvest their capital into new, like-kind properties, further amplifying their wealth-building potential by realizing one of the major tax benefits of real estate investing. What is a 1031 Exchange A 1031 exchange, also known as a like-kind exchange or tax-deferred exchange, is a specialized commercial real estate transaction governed by…