1031 exchanges: what real estate investors need to know

#72: This week, I invited Bill Exeter to teach us about 1031 exchanges. He is the CEO of Exeter 1031 Exchange Services and has been doing 1031s for nearly four decades.

You might know at a high level that a 1031 exchange means deferring real estate capital gains taxes. But the details are important to avoid dumb mistakes that will disqualify you.

We discuss:

• Different types of 1031 exchanges
• Key criteria and deadlines + step-by-step process for executing a 1031
• How to optimize timing your buy/sell transactions
• Like-kind replacement property rules
• Domestic vs. foreign property exchanges
• What constitutes “Qualified Use” + holding period requirements
• State tax consequences
• Why investors can’t do 1031s themselves
• The role of a Qualified Intermediary, how to vet one, and how much they cost
• Tax impact of converting a 1031 property into owner-occupied housing, and vice versa
• Common mistakes that disqualify you from a 1031
• Proposed Biden administration changes to 1031s: likelihood of passage + actions you can take now to mitigate adverse tax impact

Check it out here:

https://hackyourwealth.com/1031-exchange

Ever done a 1031 transaction? What was your experience? Anything you would do differently next time? Let me know by leaving a comment.

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Links mentioned in this episode:

• Exeter Group
• 1031taxreform.com
• How to avoid capital gains taxes when selling your house
• How the Home Sale Capital Gains Tax Exclusion Works (HYW033)
• Schedule a private 1:1 consultation with me
• HYW private Facebook community

   Intro/Outro: Old Bossa by Twin Musicom.