The Best Ever CRE Show JF 4139: 1031 Exchanges Explained, Rules, Risks and Real-World Strategies ft. Dave Foster
Jan 3, 2026
Dave Foster, the founder of The 1031 Investor and a real estate tax strategist, dives into the intricacies of 1031 exchanges. He explains how timing and preparation are crucial for success and debunks myths about the 45-day identification window. Dave shares red flags to watch out for when choosing a qualified intermediary and discusses the limitations of using 1031s in syndications. He also provides practical strategies for investors transitioning to passive ownership, emphasizing common pitfalls to avoid.
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How 1031 Creates Lifelong Tax Deferral
- A 1031 exchange lets you defer capital gains tax indefinitely by meeting federal rules and timelines.
- When you die your heirs receive a stepped-up basis and the deferred tax effectively disappears.
Start Shopping Before You Sell
- Start shopping for replacement property before you close the sale to avoid feeling rushed by the 45-day rule.
- Overlap sale and purchase closings or use longer commercial due diligence to effectively extend decision time.
Use Installment Sale To Buy Extra Time
- If your 45-day identification straddles year-end, you can opt not to complete the 1031 and use an installment sale to delay tax.
- That can push tax payment into the following year and give you extra time to invest proceeds.