143: Your 1031 Exchange Guide: Tax-Deferral For Life
Get Rich Education
Keith Weinhold
4.3 • 602 Ratings
🗓️ 27 June 2018
⏱️ 42 minutes
🧾️ Download transcript
Summary
#143: You're entitled to a great gift from the IRS - lifetime tax-deferral so that you never have to pay capital gains tax on the sale of your investment real estate.
With a 1031 Tax-Deferred Exchange, you can infinitely defer your: federal capital gains tax, state capital gains tax, and depreciation recapture.
From the sale of your property, you have 45 days to identify, and 180 days to close upon your replacement property. Details in-episode.
1031s are only for investment property. They're amazing wealth-building tools, but you must follow strict rules.
Graham Parham of Highlands Residential Mortgage joins Keith later in the show to discuss lending obstacles with 1031 Exchanges.
Grab Get Rich Education's new book at GetRichEducation.com/Book
Want more wealth? Visit: 1) www.GetRichEducation.com to grab our free newsletter. 2) www.GREturnkey.com for actionable turnkey real estate investing opportunities.
Listen to this week's show and learn:
02:12 Normally, upon the sale of income property, one must pay federal capital gains tax, state capital gains tax, and depreciation recapture.
03:29 1031 Exchanges vs. cash-out refinances. Reasons for doing a 1031.
06:35 Three identification methods: 3 Properties Rule, 200% Rule, 95% Rule.
09:40 Like-Kind Exchanges are flexible between income property types.
12:18 A technique to use a 1031 and still get your hands on the cash.
14:12 Primary residences have capital gains tax exemptions outside of 1031s.
18:29 Lending obstacles with 1031s.
22:38 1031 Example - sell 2 in Dallas, exchange for 4 in Birmingham.
25:32 Greater leverage.
31:06 Combining multiple properties into one exchange.
34:11 Simultaneous closings. Advantage of 1031s with turnkey property.
35:40 You can do an unlimited amount of exchanges in your lifetime.
37:22 1031s are amazing wealth-building tools, but you must carefully follow rules.
Resources Mentioned:
Graham Parham phone: (855) 326-6802
Transcript
Click on a timestamp to play from that location
| 0:00.0 | Get Rich Education is brought to you by Norata Real Estate and GRE Turnkey.com. |
| 0:07.0 | Welcome to Get Rich Education with Keith Weinhold, giving you information and ideas on the investment that has turned more ordinary people into millionaires and billionaires than |
| 0:22.1 | anything else, and can provide you with more wealth and happiness than you ever thought |
| 0:27.3 | possible. Now, here's your host, investor, entrepreneur, business owner, and educator, Keith |
| 0:35.3 | Weinhold. |
| 0:39.4 | Welcome to Get Rich Education, episode 143. Hi, I'm your host, Keith Weinhold. Today, we're |
| 0:44.8 | talking about amplifying your wealth with a 1031 exchange, also known as a tax-deferred |
| 0:50.9 | exchange, and how it helps you build your wealth. This is a great gift that the IRS |
| 0:56.3 | gives you as a real estate investor, and it's designed to help you grow your portfolio. In fact, |
| 1:02.7 | with little additional money out of pocket on my first 1031 exchange, I was able to sell |
| 1:07.8 | apartments that yielded $1,500 in cash flow and get rid of those and |
| 1:12.7 | exchange them for apartments that created $3,500 in cash flow. |
| 1:17.6 | So let's say that you've got 45% equity in a single family income property. |
| 1:23.9 | What you can do is sell it, and then you might get a hold of 40% equity out of it after |
| 1:28.7 | you pay sales commissions and make ready expenses. But with that 40% equity, you might be able to |
| 1:34.1 | trade in that one property for two similar properties with 20% down payments on each of those |
| 1:41.2 | two. Now you've got two properties, whereas you just started with one, |
| 1:46.3 | tax-free, or actually I should say tax-deferred, and there's no limit to the number of times |
| 1:53.0 | that you can do this throughout your real estate investing career. So therefore, any capital |
| 1:58.2 | gains tax liability can essentially be deferred forever. I've never paid any capital gains tax liability can essentially be deferred forever. |
| 2:02.5 | I've never paid any capital gains tax in my 15-year real estate investing career. |
| 2:07.8 | Now, in the United States, when you sell your property, you must typically pay tax on your gain portion. |
... |
Please login to see the full transcript.
Disclaimer: The podcast and artwork embedded on this page are from Keith Weinhold, and are the property of its owner and not affiliated with or endorsed by Tapesearch.
Generated transcripts are the property of Keith Weinhold and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.
Copyright © Tapesearch 2026.