Many people make wise investments, but it's easy to become entrenched in them indefinitely due to the unappealing thought of paying capital gains taxes. It's a bit like watching a batter at the plate who's always waiting for the right pitch.

Instead of waiting for the ball to come into that special zone, keep your eye on two smart ways to take a swing at capital gains taxes. These tax-incentivized programs, approved by the Internal Revenue Service, can help qualified investors defer, reduce or even eliminate their capital gains taxes on the sale of real estate investments.

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A 1031 Exchange

Julia Bard

First up, the Section 1031 exchange. This program allows investors to sell their existing investment real estate and use the proceeds to acquire a "like-kind" replacement property to defer federal and state taxes.

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