Deferring Capital Gains Taxes Using 1031 Exchanges With Bill Angove
As a qualified intermediary for 1031 exchanges, Bill Angove has helped businesses defer capital
gains taxes for over 25 years. He joins Viking Capital's Real Estate Investing For Medical
Professionals podcast to walk us through the basics of 1031 exchanges and how to leverage them
for real estate investing growth.
Bill lays out examples and facts to explain exchanges. For instance, he talks about a family that
bought a property for $40,000 that's now worth $1 million and how it could buy $2.6 million worth
of property with an exchange. He emphasizes that the like-kind exchange is often misunderstood
and can include any type of property held for investment, such as office space, apartments, retail
space, and vacation homes. Bill also discusses the advantages of 1031 exchanges, such as
diversification into different property types, consolidation of rental properties, and estate planning.
He advises people to talk to their tax person and a tax attorney to make sure they understand the
rules and regulations surrounding 1031 exchanges. Additionally, Bill explains the rules and timelines
of exchanges, including the identification period and the 2% rule, which limit the number of
properties an investor can identify for purchase.
Remember, a 1031 exchange can be a smart strategy for real estate investors, but it requires
careful planning and execution to maximize its benefits. Tune in to this episode to make sure you're
doing it – and doing it right!
Key Takeaways
● Why a 1031 exchange is a tax-deferred way to sell investment properties + purchase new
ones.
● How and where to leverage exchanges
● How to engage a qualified intermediary to facilitate exchanges
● The timeline for a 1031 exchange and what is done during that period
● The rules of exchanges: the three property rule, the 2% rule, and the 95% rule
● Why to consult a tax professional and run the numbers before committing to a 1031
exchange
"The real power of exchange is you're deferring that tax, you take that million dollars at the same
loan to value and look how much more property you can buy." – Bill
Resources:
Turbo Tax: https://turbotax.intuit.com/
Connect with Bill Angove
Website: www.apiexchange.com
VIKING CAPITAL LLC.
Connect with Viking Capital
Website: https://www.vikingcapllc.com
