The Big Picture Retirement Show does not provide tax, legal, or financial advice.

Listeners are encouraged to seek out their own advisors in these areas.

Hey, everyone.

Welcome to The Big Picture Retirement Show.

I'm your host, Devin, joined by my co-host, John Ross.

Howdy.

So, John, not long ago, I took advantage of this insane real estate market we've had, which is now starting to cool off by all of the reports that we're getting.

But I thought, you know, I've got these nightly rental properties, and I see what they are

potentially selling for now. And I had a real estate agent telling me, I think, if you list it, there's none other listed like yours. And if you list it, I think you can get this. And I thought there's no way. No one would pay that. So we listed it. And guess what? It went live on a Friday night. And on Saturday, we had three offers come in. All of them for at least the asking price. of them well the first one was asking price all cash

the other two were financing for a little more than the asking price i was blown away now i was

happy absolutely but also quickly figured out i got a problem yeah here comes the tax man yeah because

now i'm looking at frankly hundreds of thousands of dollars in a capital gain. Yes, absolutely. I thought, what am I going to do? So I called my friend, John Ross. I said, John, here's what I'm thinking. I know a little bit about 1031 exchanges, but I've never done one. So what are the rules? Can I just pay my own house off with it? We can call it at 1031.

Right, right.

And you had to stop and say, hang on, Devin.

You did have some bright-ass ideas.

Hey, I want to take advantage of all the roles that the IRS gives us.

But unfortunately, in this case, there wasn't a whole lot we could do, but there did end up being

a really good option. That's what we're going to talk about today. Yeah, yeah. Well, and, you know, you mentioned the capital gain, right? I mean, you know, you've got appreciation here that's that's going to be subject to capital gain tax, and we're in, what, about a 20% rate there for, you know, I think if you're lower income, you can capital gain at 15%.

But the one thing you didn't mention was the fact that... about a 20% rate there for, you know, I think if you're, you know, lower income, you can capital

gain at 15%. But the one thing you didn't mention was the fact that these are, these are your,

well, you said that they're rental properties. Yes. But you know, the neat thing about having a

commercial property like that is you get some phantom deductions on those commercial

...