what happens when you sell a 1031 exchange property

[ValeriaDella]

When you sell a property from a 1031 exchange, the deferred capital gains tax is due unless you complete another qualifying exchange. Both the original deferred gain and any new gain from the sale are taxed in the year of sale. If a replacement property isn’t identified or acquired within 180 days, the transaction becomes taxable, and deferred taxes must be paid.