September 26, 2025
Why Every Realtor Should Master 1031 Exchanges
Real estate investing moves fast. Clients expect quick, clear answers on strategies that protect their profits. One of the strongest tools in any realtor’s arsenal
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April 29, 2025
Real Estate Agents and 1031 Exchanges: A Crucial Partnership
When planning a 1031 exchange, you might wonder whether you need a real estate agent or if you should handle the transaction yourself. After all,
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February 13, 2025
1031 Exchanges: A Powerful Tool for Building Generational Wealth
When most investors think about 1031 exchanges, they focus on the immediate tax benefits. But did you know that these exchanges can also be a
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December 9, 2024
Winter Wins: Why the “Slow Season” Could Be Your Perfect Year-End 1031 Exchange Opportunity
As temperatures drop and holiday decorations go up, many real estate investors hit pause on their activities. But savvy investors know that winter’s “slow season”
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October 15, 2024
The 1031 Exchange Family Tree: Strategies for Multigenerational Real Estate Investing
Building generational wealth through real estate isn’t just about acquiring properties—it’s about strategically growing and preserving your portfolio over time. Multigenerational real estate investing, including
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October 7, 2024
The Green Investor: How 1031 Exchanges Can Fuel Sustainable Real Estate Investments
In today’s real estate market, sustainability isn’t just a buzzword—it’s a smart investment strategy. As an investor, you might be wondering how to grow a
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September 23, 2024
Federal Reserve Rate Cut in 2024: Lessons from 2001, 2008, and 2020 and Its Projected Impact on Real Estate
The Federal Reserve’s recent decision to lower interest rates by 0.5% in 2024 has generated significant attention, particularly in the real estate market. Drawing on
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August 21, 2024
Corporate Transparency Act Update: Most Real Estate LLCs No Longer File
If you formed an LLC for your rental properties, you probably remember the scramble over Corporate Transparency Act (CTA) filings. The rules have changed completely
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April 22, 2024
How Does a Seller’s 1031 Exchange Affect the Buyer?
As a seller involved in a 1031 exchange, you might be wondering if disclosing this strategy could make your listing less attractive or complicate the
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March 28, 2024
Navigating Your 1031 Exchange: How to Collaborate with Your Realtor for Success
Your trusted real estate agent often plays a crucial role in property transactions – sourcing listings or representing your interests as a seller. Within a
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Have Questions?
Chat with one of our team members to see if a 1031 Exchange is right for you, (without committing to anything).
Video Resources
Can I 1031 Exchange My Home? | 1031 Questions, Answered
Folks ask me all the time, "Can I 1031 exchange my home?" The answer is no. But there's some good news: you don't need to.
• Selling your home falls under a different part of the tax code, Section 121, not Section 1031.
• Section 121 says that if you have capital gain on a home you've lived in for two of the last five years, you can keep a portion of that gain tax-free.
• If you're single, you can keep up to $250,000 of capital gain tax-free. If you're married, up to $500,000.
• Section 1031 is limited to property used for trade, business or investment, not your personal residence.
• If a property is both your homestead and used for something else, call us. In some cases you can use your Section 121 exclusion and do a 1031 exchange with the rest of the funds.
Chapters
0:00 Intro
0:05 Can I 1031 exchange my home?
0:16 Section 121 for your home
0:42 $250,000 single, $500,000 married
0:54 What Section 1031 covers
1:16 When a home is also an investment
1031 Questions, Answered is a WealthBuilder 1031 series with plain-English answers to the questions investors ask us most. Subscribe so you don't miss the next one.
Have a question about your sale? Start at https://wealthbuilder1031.com or call 888-508-1901.
This video is for general educational purposes only and is not tax, legal or investment advice. Tax rates vary by situation. Talk with your own advisors about your situation.
#1031Exchange #1031QuestionsAnswered #Section121
Does a Small Check Mean a Small Tax Bill? | 1031 Questions, Answered
"I just sold my property, and I only got a small check at closing, so I should have a really small tax bill." Well, that's not necessarily true.
People often get confused about this because what we get at closing is based on one set of numbers, and what we owe in capital gains tax is based on another.
• Your check at closing is the sales price, minus closing costs, minus your loan payoff.
• Your capital gain starts with what you originally paid, adds improvements and subtracts the depreciation you've taken. That's your adjusted tax basis. Your gain is the sales price, minus sales expenses, minus that adjusted basis.
• The loan payoff isn't part of the capital gain math. That's why an investor who has done cash-out refis can get a very small check and still owe Uncle Sam a much bigger one than planned.
• Before you sell, don't assume. Check your numbers with your accountant, or try the free capital gain calculator at wealthbuilder1031.com for a quick look at your gain and the tax at a 15% rate.
Check your numbers before closing.
Chapters
0:00 Intro
0:05 "I only got a small check"
0:29 What you get at closing
0:40 How capital gain is calculated
1:19 Why the loan payoff matters
1:43 Check your numbers before you sell
2:00 Our free capital gain calculator
1031 Questions, Answered is a WealthBuilder 1031 series with plain-English answers to the questions investors ask us most. Subscribe so you don't miss the next one.
Have a question about your sale? Start at https://wealthbuilder1031.com or call 888-508-1901.
This video is for general educational purposes only and is not tax, legal or investment advice. Tax rates vary by situation. Talk with your own advisors about your situation.
#1031Exchange #1031QuestionsAnswered #CapitalGainsTax
What Does a 1031 Exchange Accomplish? | 1031 Questions, Answered
People often ask me: what is the point of doing a 1031 exchange? What does it accomplish?
I like to answer with a story about two investors, John and Jane. Each has $100,000 of tax basis in a property and sells it for $150,000, so each has a $50,000 capital gain.
• John sells the usual way. At the closing table there's an invisible third party, Uncle Sam, and John writes him a $7,500 check (at a 15% tax rate).
• Jane uses Section 1031. She follows the IRS rules and puts all of the sale money into replacement property, so she defers the tax.
• Jane keeps that $7,500 as equity in her new property, where it can keep appreciating and producing cash flow. John has lost that opportunity for good.
• Now add a zero: a $500,000 gain means a $75,000 check. Add another zero: a $5 million gain means a $750,000 check. That's real money.
That's the value of a 1031 exchange: keeping your equity working for you so you can grow and build wealth over time.
Chapters
0:00 Intro
0:05 What does a 1031 exchange accomplish?
0:19 John sells and makes a $50,000 gain
0:38 Uncle Sam at the closing table
1:20 Jane and Section 1031
2:22 What Jane gets that John doesn't
3:16 "Is it really a big deal?"
3:37 Add a zero, then another
4:11 Why we do 1031 exchanges
1031 Questions, Answered is a WealthBuilder 1031 series with plain-English answers to the questions investors ask us most. Subscribe so you don't miss the next one.
Have a question about your sale? Start at https://wealthbuilder1031.com or call 888-508-1901.
This video is for general educational purposes only and is not tax, legal or investment advice. Tax rates vary by situation. Talk with your own advisors about your situation.
What Is a 1031 Exchange? | 1031 Questions, Answered
With a company named WealthBuilder 1031, you can guess the question I get asked the most: what is a 1031 exchange?
In about two minutes, I walk through it in plain English. A 1031 exchange lets you sell investment real estate, buy other qualifying property, and defer the capital gains tax. Defer means you don't pay it now; you pay it sometime later.
Here's how it works:
• Set up the exchange before your sale closes
• A qualified intermediary holds your sale money, so you never touch it
• Identify your replacement property within 45 days
• Buy your replacement property within 180 days
The payoff: you keep the full value of your property working for you, instead of taking a 15% or 25% haircut and sending that check to Uncle Sam.
Chapters
0:00 Intro
0:05 The question I get asked the most
0:16 What a 1031 exchange is
0:41 How a 1031 exchange works
1:01 The 45-day and 180-day deadlines
1:49 Why it matters: keep the full value working
2:08 The recap
1031 Questions, Answered is a WealthBuilder 1031 series with plain-English answers to the questions investors ask us most. Subscribe so you don't miss the next one.
Have a question about your sale? Start at https://wealthbuilder1031.com or call 888-508-1901.
This video is for general educational purposes only and is not tax, legal or investment advice. Tax rates vary by situation. Talk with your own advisors about your situation.