Most 1031 exchange mistakes happen because investors focus heavily on the tax savings and underestimate the rules that protect those savings in the first place. At Above & Below 1031, we regularly speak with investors who: start searching for replacement properties too late assume deadlines are flexible misunderstand like-kind rules accidentally trigger taxable gain during the process In some cases, a single mistake can turn a tax-deferred exchange into a fully taxable sale.

You bought a rental property a few years ago. It’s gone up in value, the rent has been steady, and now you’re thinking about selling. Then you run the numbers and realize how much of your profit could go to capital gains taxes. This is where many investors start looking into a rental property 1031 exchange. A 1031 exchange allows you to defer those taxes by reinvesting the proceeds into another investment property instead of cashing out. When done correctly, it helps you keep

You’ve found a better investment opportunity, just not in the same state. Maybe you’re selling a property in California and looking to reinvest in Texas. Or you’re moving equity from a high-tax Northeast market into a growing rental market like DFW. Either way, the question comes up quickly: Can you complete a 1031 exchange in different states? At the federal level, the answer is straightforward. But what most investors don’t realize is that the real complexity begins at the

You are under contract on your investment property. Your Qualified Intermediary is in place. And now comes the question that trips up more investors than any other part of the identification process: how many replacement properties can you actually identify, and what rules govern that number? The answer is not as simple as "three." The IRS gives investors three distinct frameworks for identifying replacement properties in a 1031 exchange, and the 3 property rule is just the m