Real estate investors have used the Section 1031 exchange for decades to trade assets while deferring taxable gains. On the other hand, the qualified opportunity zone program provides real estate investors options to defer taxes and, in some cases, even eliminate taxable profits altogether, which has led real estate investors to ask: Which is better, a 1031 tax exchange or a qualified opportunity zone real estate investment? The IRS has established strict regulations for both alternatives, and some real estate investments may qualify for both tax breaks. Before choosing between the two approaches, real estate investors should understand how the differences affect their taxable gains. What Is a Qualified Opportunity…