Real Estate Investing Resources

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What Happens if a 1031 Exchange Fails?

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When a 1031 exchange fails, the investor must pay capital gains and depreciation recapture taxes on the sale of the relinquished property. Typically, such failures occur due to missed identification or closing deadlines, improper ...

Sep 4, 2026

Can You Do a 1031 Exchange with a Related Party?

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Yes, you can execute a 1031 exchange with a related party, but specific IRS rules must be adhered to in order to prevent abuse of the tax deferral benefits. This involves a mandatory two-year holding period for both parties involved in ...

Sep 3, 2026

How Does Debt Replacement Work in a 1031 Exchange?

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Debt replacement in a 1031 exchange involves ensuring that the mortgage or debt on a replacement property matches or exceeds the debt of the relinquished property. This maintains the tax-deferred status by preventing the transaction ...

Sep 2, 2026

What Records Do You Need for a Successful 1031 Exchange?

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A successful 1031 exchange requires specific documentation to ensure compliance with IRS regulations and to safeguard tax-deferral benefits. Essential records include the purchase and sale agreements, exchange agreement, and Form 8824 ...

Sep 2, 2026

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Today's Term

Compound Interest

Compound interest is “interest-on-interest”, or the ability of a financial instrument to generate earnings from its earnings. Compound interest can be calculated using the formula FV = P*(1+R/N)^(N*T), where FV is the future value of the ...

Glossary of Terms