One of the more interesting tax advantaged strategies I have come across is the 1031 Exchange. I know some Advisors use this strategy on a regular basis for situations that it is appropriate, and others have never tried to do one. I think the key factor is first learning of their existence, and second, getting a good level of understanding of the very specific rules and timelines that are required to qualify for an exchange. I interviewed John Hotvedt, an experienced real estate attorney that has been involved in over 100 of these 1031 exchanges. John does a great job of first explaining what a 1031 exchange is as well as going over a step by step process to follow in order to properly execute an exchange. We also dive into the specific timeline and some of the pitfalls that can come up and how to avoid them. I hope you enjoy episode 3 with John Hotvedt, The 1031 Exchange.
SOME QUESTIONS I ASK:
- What is a 1031 Exchange
- Describe the tax strategy behind a 1031 exchange
- How can you qualify for an exchange
- What are the steps to follow to make sure you do not disqualify yourself
IN THIS EPISODE YOU WILL LEARN:
- The specific time line that must be followed to qualify for the exchange
- What types of properties qualify for a 1031 exchange
- Who the third parties are that must be involved during the process
- Some of the pitfalls such as “boot issues”
John Hotvedt and Hotvedt and Terry Law Firm contact information:
- john@handtlaw.com
- www.hotvedtterry.com/
- Phone number: (262) 842-2338