1031 Exchange Explained: A Real Estate Strategy For Investors

In this video, Toby Mathis, Esq. will explain how a 1031 Exchange works and how you can benefit from it for real estate investing.

The 1031 exchange is a real estate strategy that many use to improve their performance in the market. If you’re not familiar with the 1031 exchange process, it is a way for real estate investors to sell an asset and reinvest the capital into another one without paying taxes on the profit. The idea is that your profits are put towards another asset and then when you sell that new investment, you’ll be able to claim all of your costs back.

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Show Notes:

0:00 Intro
0:12 Where 1031 Exchanges Take Place
5:34 Qualified Intermediary
9:15 QI Timeline
9:54 Scenarios
14:38 1031 Exchange in California
32:33 Outro
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The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.

#tobymathis #1031exchange

[cjudah]

I'm getting ready to sell my house in Atlanta. I will definitely use the 1031 exchange thanks to your tremendous information. This is the best breakdown of the 1031 exchange that I have heard. I also love your motto, buy, borrow die, 1031 exchange, and if you're paying taxes in real estate you don't own enough. This was an excellent class, thank you sir.

[mikemurphy]

Just stumbled across your channel. Really like the format for content. Simple and to the point.

[jeremymitzuk]

I know a video is very informative when I have to back it up several times to understand what is being said. Well done!

[davidmoolekampcpa]

Great video, but no one talks about after you do the 1031 and you sell - what about the deferred gain? Not everyone is going to exchange for the rest of their lives. Can you cover that in a video one day? thanks for all of your video I watch them weekly and share with other CPAs

[mannykeys]

All gems 💎 my guy! I feel like I owe you an hour consultation. Keep up the great work.

[KaiPonte]

Thank you! I had been looking at a 1031 for years. As my father-in-law died and left a property worth $1.4M that my in-laws bought in 1973 for $45, 000. I think this can be transferred and sold as the stepped up basis of the property is $1.4M - the value when he died. (My mother in law died 19 years ago.)

[guahangarage]

Oh California! How I love and hate you at the same time😂. Great video got me laughing and learning at the same time! Thank you for the education! Looking forward to doing business with you sometime within a year from now. Just subscribed! Much respect to you! 🤙🏽

[duprosezzllc]

No wonder you have 340k subs.

Your content is 🔥

[ZhuGillian]

I found this video super helpful. Thank you for sharing!

[irgski]

What if you and another property owner simply want to exchange properties?
Do you still need to actually sell the property?

[johnnytsan]

Can we buy with a loan on the replacement property? Or all the proceeds have to go back into the replacement purchase?
Thank you Sir.

[mprenn]

Thanks for the video. Question: we bought a home in 2016 and kept our old home, but haven't rented it out during that time (a long story). Our new home has doubled in value from 500k to over 1M. so we could sell and use the 121 exclusion on the new home, no problem. My question is regarding the first home: as it WAS a primary residence but no longer qualifies, will it be considered investment property if we rent it out, then be able to do a 1031 exchange? We are looking to leave the state soon and would consider divesting all holdings. We also own some land that has been rented since 2006 and is worth about $500k.

[NicholasMendez-yy]

example can I buy 10 properties as long as it does not exceed 200% of the sale??

[r.c.]

Looking for a QI...Not all can be trusted...Do you know someone in Long Beach area...

[rrichard]

Your videos are very informative but too long. Try to trim the length but keep up the great work.

[tomporter]

Hi. Enjoying your videos, I am trying now to do a 1031, but finding that it's impossible to do an improvement exchange if I'm getting a mortgage on the properties. Unless I go with a non-recourse loan, at a very high differential rate. Is there a strategy to reassure the lender, on for instance, a DSCR loan, to be able to make the renovations within the 180 day window?

[facts]

180 days or till due date of tax return, make sure to file for extension

[goblingreen]

Great video. Thanks for creating.
Does the tax obligation amount change with the tax laws & percentages every year, or does the amount owed stay static over time? A 50k debt won't sting as much in twenty years as it does today, even if a 1031 deferral comes due at that time.

[rohanebanks]

My Situation: I want to sell my rental in Austin (had it for over 5 years - it was never my primary residence) I would like to buy my primary residence in Orlando ... BUT.. under the Like-Kind rules, I have to acquire the Orlando property and rent it out. I have to hold it as a rental for how long before I can move in????

[Dipper]

So I have an Airbnb that’s still under my name, will it still work or do I have to transfer it to an llc? Also, if I buy a duplex, can I live in one?