In this episode, our guest, Bernard Reisz, talks about 1031 exchanges. How do you find someone to help you with a 1031 exchange? What is a 1031 exchange in the first place? Stay tuned!

The points below are from the 60th episode of The Real Estate JAM, where we discussed all 1031 exchanges.

Tune in to the full episode on YouTube, Spotify, or Apple Podcasts.

Real estate and 1031 exchanges

A 1031 exchange allows a taxpayer to defer paying taxes on the sale of real estate property by reinvesting the proceeds from the sale into a new, similar property. To take advantage of this, the taxpayer must follow IRS guidelines, including working with a Qualified Intermediary, identifying a replacement property within a specific time frame, and ensuring the replacement property is of “like-kind” and equal or greater in value and equity. By doing this, taxpayers can defer taxes and continue to grow their real estate investments.

What is QI?

A Qualified Intermediary (QI) is a person or entity that acts as a facilitator in a tax-deferred exchange of property under Section 1031 of the Internal Revenue Code by holding the proceeds of the sale and using it to acquire the replacement property on behalf of the taxpayer. QI acts as a neutral third party to ensure that the proceeds from the sale do not trigger the recognition of gain or loss under the tax code.

Want to learn more? You can listen to the full episode on YouTube, Spotify, or Apple Podcasts.

Outline of the Episode:

• [00:04] Welcome to the show!
• [00:53] Can you tell us more about 1031? What is it about?
• [02:55] What are the things you need to keep track of to ensure your success, and how important is it to find the right person to help you?
• [04:02] What tools do people need to find the right person when they want to do a 1031 exchange?
• [04:49] What are the fundamentals of a 1031 exchange? What do people need to know about it?
• [10:03] What is the connection between a 1031 exchange, swapping assets, and a qualified intermediary?
• [12:13] What’s a QI? How can this help people when it comes to sales and transactions?
• [18:30] How important is it to know the tax value of a 1031 exchange?
• [19:51] Recognition of gain? Recognition of loss? How are these things relevant to 1031 exchanges?
• [21:47] When dealing with a 1031 exchange, you need not just one person. You need an entire team. Do you agree?

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