Jon Hilley, Founder of 1031 Specialists, unravels the mysteries and myths surrounding this powerful tax-saving strategy. He shares the potential benefits of 1031 exchanges, addressing common misconceptions, and even some lesser-known hacks that investors can use to their advantage.
Key Takeaways:
- The Power of Compounding Tax-Free Returns: John Hilley highlights the significant advantages of using 1031 exchanges to defer capital gains taxes. By reinvesting your profits tax-free, you can exponentially grow your real estate portfolio and maximize your returns over time.
- Debunking Myths: Many investors believe that 1031 exchanges are complicated or restricted to specific scenarios. However, John dispels these myths, emphasizing that 1031 exchanges can be more flexible and straightforward than commonly thought. He also clarifies misconceptions about property types, entities, and transactions that can qualify for a 1031 exchange.
- Timing Matters: Understanding the timing of a 1031 exchange is crucial. John explains that while you can defer taxes by initiating a 1031 exchange, the year of the first property sale is what ultimately determines when you pay those taxes. He provides insights into managing your tax liability by strategically navigating the 1031 exchange process, even if you opt out of it.
Jon Hilley | Real Estate Background
- Founder of 1031 Specialists
- Based in: Denver, CO + Orange County
- Say hi to him at:
- Best Ever Book: The Giving Tree by Shel Silverstein
- Greatest Lesson: Raising $100MM doesn't guarantee success.
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