Did I miss the boat?

Question

Hello all. A couple years ago I sold my SIngle family rental and bought a duplex with the proceeds. Being a newbie and working with an inexperienced realtor, my transaction failed to go through the 1031 exchange process. I've talked to a couple tax professionals since then and been told that that boat has already sailed. Lord knows I won't be making that same mistake again.

I wish I would of known about this forum back then, It would of helped me a lot. Thank you all

Ramon Olmos · Answer

Thanks guys, this actually makes me feel better. It puts me in a mindset that more successful deals will be in my future!

Dave Foster · Answer

@Ramon Olmos, 550,000 exchanges in 2005, 100,000 exchanges in 2008.  2/3rds of realtors turned over in the last 10 years.  And the largest buying demographic today was 20 years  old when real estate peaked last time.  It's no wonder that folks have forgotten or never heard of 1031s.  Folks like @Robert Hetsler and I yell from the tree tops :)  It can be a powerful tool for you - next time!

Robert Hetsler · Answer

Yes they are correct, for that transaction, the boat has sailed.  Make sure any future investment properties that you are selling and intend to use the proceeds to purchase other investment property, you set the exchange up well before the closing on the sale of your investment property.

Zach Quick · Answer

@Ramon Olmos Don't beat yourself up over it. I would say most people, and even most investors don't know much about them.