Articles about tax tips
You closed on a rental property sale yesterday. Your net proceeds are sitting with a Qualified Intermediary. You feel good. The 45-day clock just started. Most investors do not realize how fast the
Federal 1031 treatment is the easy part. State tax treatment is where investors get surprised, especially when exchanging across state lines. Learn how clawback states, non-conforming states, and multi-state sourcing rules can create unexpected tax bills years after you thought the exchange was done.
The "swap till you drop" strategy combines 1031 exchanges with step-up in basis to permanently erase decades of deferred capital gains and depreciation recapture at death. Learn the mechanics, the trust structures that preserve the step-up, and what your heirs need to execute the plan.
Scaling a rental portfolio is not about buying more doors. It is about rotating capital out of your worst performers into your best opportunities without triggering the tax bill. Here is a three-year cascade walkthrough with real numbers.
Rolling a 1031 into a DST looks simple on the brochure. The sponsor fees, the 100 investor cap, and the 721 UPREIT exit are where the real decisions happen. Here is how to underwrite a DST offering the way you would underwrite a duplex.
A build-to-suit 1031 (also called an improvement or construction exchange) lets you use sale proceeds to build or improve a replacement property instead of buying one off the shelf. Learn how the EAT parking structure works, what can realistically get built in 180 days, and when the fees are worth the tax deferred.
A reverse 1031 exchange lets you buy the replacement property before selling the relinquished one. It costs 2-3x a forward exchange, most banks will not finance it, and the 45/180 clock runs backward. But when the market turns and you see a deal that cannot wait, reverse exchanges are the only tool that works.
A 1031 exchange is not tax-free. It is tax-deferred, and depending on how the deal is structured, you may still owe tax on "boot" and depreciation recapture even if the exchange itself is valid. This guide shows how to calculate boot, model mortgage boot (the trap), and figure out exactly what your CPA is going to bill you for.
Your qualified intermediary holds hundreds of thousands of dollars of your money in trust during a 1031 exchange. Most investors pick a QI based on a referral and a phone call. This guide walks through bonding, segregated accounts, insurance, red flags, and the exact questions to ask before you hand over the wire.
The 180-day closing deadline in a 1031 exchange is not actually 180 days for most investors. Tax filing deadlines can truncate it. This guide covers the calendar math, what counts as closing, the miss scenarios, and how to build buffer when your PM controls part of the timeline.
The 45-day identification window is the part of a 1031 exchange that blows up the most deals. This guide walks through what identification actually means, the three rules you can use (three-property, 200 percent, 95 percent), and a realistic day-by-day timeline for PM-managed investors.
Today is April 15. If you are a landlord, one of two things just happened. You either filed your return weeks ago because your records were organized and your CPA had everything they needed by Februa