How One Landlord Uses a 1031 Exchange to Defer Millions in Taxes

Episode 26 of The Real Estate Investing Podcast breaks down the 1031 exchange — a tax deferral strategy that lets landlords sell a property, reinvest the proceeds into a like-kind asset, and kick the capital gains tax can down the road. Lucas walks through a real case: a landlord who bought a duplex for $400,000, sold it seven years later for $750,000, and used a 1031 exchange to roll the full $350,000 gain into a four-unit building — without paying a dime in federal capital gains tax. Luna presses on the timeline constraints, the role of a qualified intermediary, and the catch: eventually the tax comes due unless you die holding the property, triggering a step-up in basis. They discuss the 45-day identification window, the 180-day close rule, and why vacation homes don't qualify unless converted to rental. Practical, specific, and built for landlords with equity they want to grow tax-deferred. #1031Exchange #TaxDeferral #LikeKindExchange #CapitalGainsTax #RealEstateInvesting #LandlordStrategy #QualifiedIntermediary #RentalProperties #PropertySwap #StepUpInBasis #CashFlow #Multifamily #Duplex #FourPlex #IRS #Section1031 #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo