Imagine you've owned a rental property for years.

You've managed the tenants, paperwork, and repairs, and are finally ready to sell the property.

Whether you're just tired of being a landlord or want to cash in on this real estate investment,

let's say the sale will give you

a $100,000 profit. While that sounds terrific, the reality is that between federal and any state

taxes, you might owe $30,000, leaving just $70,000. But what if I told you that instead of having to pay the government,

you could use a legal loophole to keep all your profit working for you? Well, this rule is called

a 1031 exchange, and I'll review the basics in this podcast. You'll learn how to defer a real estate tax bill and use the

government's money to build your own wealth. Whether you're considering buying your first

rental property or maybe you're a seasoned landlord, you can't afford to ignore this strategy.

Welcome back, everybody. This is episode 988 of Money Girl. I really appreciate you downloading the show. I'm Laura Adams, an award-winning author, on-camera spokesperson, money speaker, and founder of the money stack. That's my substack newsletter. If you want help achieving your money goals and building wealth this year,

my next workshop is titled Set Your Money Strategy for 2026, how to prioritize and achieve financial

goals. When you subscribe to the money stack, you'll automatically get an invitation to this

live event. I hope to see you there. You can learn more,

ask money questions, and sign up for the money stack at laura d adams.com. You can also

leave a voice message with your question or comment by calling 302-364-0308, and you can find all this information in the show notes.

All right, today we're going to get into the 1031 Exchange. What exactly is this?

Well, it's pretty simple. It is a tax deferral strategy that allows real estate investors

to sell a property and then purchase a similar property without paying

any capital gains taxes at the time of the sale. As with many IRS rules, its name does come

from its section of the Internal Revenue Code. With a 1031, you basically just roll over profits

from one property into another one.

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