The 1031 Exchange is one of the most effective and commonly used tools in the the Commercial Real Estate world. In this episode we talk about how to effectively and safely navigate a 1031 exchange. We discuss the timelines and the appropriate way to identify property to keep you safe from paying tax on a CRE transaction.
Leonard Spoto oversees all of the sales and marketing operations for Asset Exchange Company. He is a frequent keynote speaker and an accredited course instructor on the subject of 1031 Tax Deferred Exchanges. He has presented his popular real estate and tax workshops to over 12,000 Realtors, lenders, title professionals and investors and is the author of dozens of published 1031 Exchange related articles.
Prior to co-founding Asset Exchange Company, Leonard worked for a major national title company affiliated exchange company. In this position, Leonard lead the company’s sales efforts by directing over 1,200 tax-deferred exchanges in Northern California in a single year.
Leonard is a graduate cum laude from Cal Poly, San Luis Obispo with a Bachelors of Science in Business Administration, a minor in Economics and a concentration in Finance.
Below is the best number to contact Leonard
Tel: 877-471-1031
Episode Show Notes
- What is a 1031 Exchange – 2:31
- What is the importance of the 1031 Exchange – 3:42
- What is the structure and timeline of a 1031 Exchange – 5:23
- The exception to the 45-day Identification Rule - 8:35
- What is the correct way to identify replacement property - 11:50
- Do you need to be in contract to identify a property? – 13:25
- How do you identify a property without an address or legal description - 14:40
- Different Identification Structures (3 property rule vs 200% rule) – 15:50
- 200% rule - 17:05
- The 95% exception – 18:30
- Most common mistakes made in a 1031 – 19:25
- How long should you own a property before you sell it and enter a 1031 – 24:45
- What is the definition of like kind – 26:47
- What to know when buying a Condo in Maui – 29:23
- Air BNB – 29:48
- What if you trade into a Ranch or Piece of Land? 31:17
- Is the 1031 Exchange going away? 34:30
- Has 1031 Exchanges slowed down since the interest rate hike? 38:20
- Why should someone utilize a professional 1031 Intermediary? 40:14