The 1031 Exchange Trap Landlords Keep Falling Into

Lucas and Luna break down the 1031 exchange — the IRS rule that lets real estate investors defer capital gains taxes when selling one property and buying another. But a single mistake can turn that tax deferral into a massive tax bill. They walk through a real case: a landlord in Denver who swapped a $2.1 million apartment building for a triple-net-lease CVS pharmacy in Nebraska, thinking he'd locked in tax-free growth. Eight months later, the CVS tenant filed for bankruptcy, and the investor was stuck with a vacant box and a surprise IRS bill. Along the way, Lucas and Luna explain the 45-day identification window, what counts as 'like-kind' property, and why holding period matters. They also discuss a 2025 Tax Court ruling that changed how the IRS treats improvements made during the exchange period. If you own rental property, this episode will save you from a costly surprise. #1031Exchange #TaxDeferral #RealEstateInvesting #CapitalGains #IRS #LikeKindProperty #TripleNetLease #LandlordTips #PropertySwap #TaxCourt #DenverRealEstate #CVSBankruptcy #45DayRule #HoldingPeriod #Finance #BusinessPodcast #FexingoBusiness #RealEstateWealth Keep every episode free: buymeacoffee.com/fexingo