When Irs Form 13844 Pros 2025

Hey guys, it's Matt. Today, we're going to talk about 1031 exchanges. They can seem very complicated, and they are somewhat complicated, but I'm going to tell you everything that I know, and hopefully, everything you need to know about these types of transactions and how you can utilize them when you're selling your real estate. So, let's jump into it. So, for those of you who don't know, here's what a 1031 exchange is. Okay, let's say you've got a piece of rental real estate. And I need to accentuate the word "rental" (we'll get into that in just a minute). Let's say you've got a piece of rental real estate right here. It's a cute little house. Let's put a smokestack on it, there you go, okay. Alright, so there's your rental real estate. And this could be a single-family home, this could be an apartment building, this could be a shopping center, this could be a mixed-use building, anything. Any type of real estate, even land. It could be any type of real estate that you own (check on that land thing, by the way, I'm not sure, because land, I'm not sure if it qualifies for investment intent, so put an asterisk next to that one). But I have done 1031 exchanges for smaller properties, duplexes, and small to mid-sized multi as well, so let's stick to that. But it can be commercial as well. And the purpose of a 1031 exchange is selling this property and keeping all the proceeds from the sale and rolling it into a next purchase, into a bigger property. Because if you don't do a 1031 exchange, you're going to pay income tax on the sale of the properties. Let's say you bought this property for $100k, you held it for five...