721 Exchange—Real Estate’s Best-Kept Secret

Miami Beach, Florida, residential towers on January 20, 2022. CHANDAN KHANNA/AFP via Getty Images

By Philip Michael

In real estate, one of the most pro tactics is the 1031 Exchange—also known as the secret behind how Donald Trump and other real-estate developers pay almost nothing in taxes.

However, there’s another, little-known tax loophole that Real Estate Weekly, a New York real estate trade publication, calls real estate’s “best kept secret.”