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CVN Money - A 1031 exchange program allows you to defer 100% of capital gains tax and depreciation recapture tax on investment properties. This allows you to potentially increase income & capital appreciation. It also eliminates day to day property management headaches, and gives you the potential to upgrade to institutional quality real estate. It will also let you diversify you portfolio both by asset class and geographically and it allows you to remove or minimize real estate holdings from your taxable estate.
For more information see 1031 Exchanges.