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.