Can You Use a 1031 Exchange if You Sell Your Home for Cash?

Can You Use a 1031 Exchange if You Sell Your Home for Cash? If you’re thinking about selling your property for cash, you may be wondering if you can take advantage of a 1031 exchange to defer capital gains taxes. Understanding how this works can help you make smarter financial decisions when selling your home. What Is a 1031 Exchange? A 1031 exchange, also known as a like-kind exchange, is a tax-deferral strategy that allows real estate investors to sell an investment property and reinvest the proceeds into another like-kind property. By doing this, you can defer paying capital gains taxes on the sale, which can be a significant benefit for long-term wealth building.