Kansas City investors are selling properties right now and handing a significant portion of their proceeds to the IRS — not because they have to, but because they have not yet built the 1031 exchange into their exit strategy.
And if you’ve listened in on a few of our meetings – the 1031 Exchange is where it’s at for anyone wanting to get rich with real estate . . . WAY FASTER!
The 1031 exchange is a provision in the U.S. tax code that allows real estate investors to defer federal and state capital gains taxes entirely when they sell one investment property and reinvest the proceeds into another qualifying property. Done correctly, you move forward with 100% of your capital working for you in the next deal.
Done incorrectly — or missed entirely — the result is a tax bill that can significantly reduce the capital you have available for your next acquisition.
What is a 1031 Exchange
A 1031 exchange — named for Section 1031 of the Internal Revenue Code — lets you sell an investment property and defer capital gains taxes by rolling your proceeds directly into a new, like-kind property. The IRS does not collect those taxes at the time of sale. Instead, the tax basis carries forward into your new property.
The result is that every dollar that would have gone to the government stays in your portfolio, compounding as you continue to acquire and trade up.
Stop Giving 20% of Your Profits to the IRS: Scale Faster with the 1031 Exchange
Most investors know the 1031 Exchange exists, but few know how to execute it under pressure. Between the 45-day identification window and the 180-day closing rule, the margin for error is razor-thin.
Steve Wolterman is a 1031 Exchange Specialist and at this master class he is breaking down the mechanics of “trading up” so you can stop settling for modest gains and start scaling your equity aggressively.
The “Like-Kind” Reality: What properties actually qualify and how to diversify your portfolio through an exchange.
The Timeline Trap: A step-by-step breakdown of the identification and exchange periods to ensure you never miss a deadline.
Qualified Intermediaries: Why you cannot touch the cash yourself and how to select the right partner to hold your funds.
The “Swap ’til You Drop” Strategy: How to use sequential exchanges to build a legacy of wealth that can eventually be passed to heirs with a stepped-up basis.
This all goes down on June 27th from 8 am to 2 pm on Zoom.
Get your Zoom seat (and/or your recording!) by registering below!