Anderson Business Advisors Podcast
Anderson Business Advisors Podcast
How to Use a 1031 Exchange to Sell Real Estate
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How do you use a 1031 Exchange to sell real estate? Toby Mathis and Jeff Webb of Anderson Advisors answer your tax questions. Submit your tax question to taxtuesday@andersonadvisors.

Highlights/Topics:

  • Is the Section 1031 option applicable on personal-use property in case the same property is sold less than two years of use by the owner? This option is not applicable to personal-use property (primary residence or second home) unless it is converted into some type of investment or rental property
  • Who would you get a 1031 Exchange from when getting ready to sell property? If you are planning to do a 1031 Exchange, you need to start talking to a qualified intermediary before starting the sale
  • I have a second home in my personal name in a different state. It has appreciated. If I sell the property, how would it be taxed? The entire gain would be capital gain – there’s no 121 exclusion, no 1031 (unless made a rental property first); gain will be taxed at the federal level and the state it is in and in which you reside

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Resources:

Entity Formation

Self-employment Tax

Section 121 – Capital Gains Exclusion

1031 Exchange

Toby Mathis

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Full Episode Transcript:

Toby: All right, guys. You are watching Tax Tuesdays. Hopefully you’re able to hear us loud and clear. Hey, Jeff.

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