Here is when I wouldn't do a 1031 Exchange

[Mike Auerbach]

I spoke with someone that couldn't find a replacement property that "fit" into their investment criteria. So I said its probably best to just pay the tax.

If an investor overpay a ton, just to save on taxes, most likely they'll be inflicting significant financial damage to their portfolio… it’s probably best to opt out and pay the tax.

1031s aren't structured in a way that makes someone "overpay" - it mainly comes down to poor planning which puts them in that situation

Never let the tax tail wag the dog!
#1031exchange hashtag#taxes #capitalgains #planning

[John Oks]

Quote from @Mike Auerbach:

I spoke with someone that couldn't find a replacement property that "fit" into their investment criteria. So I said its probably best to just pay the tax.

If an investor overpay a ton, just to save on taxes, most likely they'll be inflicting significant financial damage to their portfolio… it’s probably best to opt out and pay the tax.

1031s aren't structured in a way that makes someone "overpay" - it mainly comes down to poor planning which puts them in that situation

Never let the tax tail wag the dog!
#1031exchange hashtag#taxes #capitalgains #planning

I worked with investors that held off selling their property simply because the market did not makes sense and they could not find replacement property that fit their criteria. Rather than exchange into a bad deal they just held off selling all together. Others that did sell and could not find a suitable exchange property went the DST route.