Did you ever miss an opportunity to use a 1031 exchange?
Sometimes the market is just right and you find a great buyer. You unload the property, because how can you pass the offer up.
I've seen some owners sit on that cash, very happy with the profit, but don't end up taking advantage of a 1031 exchange or like-kind exchange (a rule in the tax code which lets you defer the gain on the sale if you are also purchasing a property in the same class - google search for a more comprehensive definition!).
One story I heard a few years back from a CPA, was of a client who had farmland in Oklahoma. This farmland had been in the family for generations. It was finally discovered that the land was located on top of an oil deposit!
They sold the land for a mix of property/cash making part of the sale eligible for a 1031 exchange.
BUT, they weren't alerted to this fact until a chance conversation over dinner with a VP of Tax friend of theirs. (Their first CPA hadn't flagged the opportunity)
Instead of having to swallow a huge TAX expense in that year, they were able to defer millions in tax liability.
Wondering if anyone has similar stories of finding out about the 1031 exchange just in the nick of time.
Or the flipside, missing out and learning a lesson for their next sale.