00:00 Intro: Flipping Properties with an IRA
01:03 Prohibited Transactions & IRS Risks
02:13 UBIT Tax: Why Flips Get Taxed
03:24 Investor vs Dealer Status Explained
05:22 Sweat Equity & Legal Ways to Flip (ROBS Option)

Thinking a Roth IRA flip means zero taxes? Not so fast. Most investors get this wrong… and the IRS has no sense of humor when they do.

In this episode, Dave and Tom Moore from IRA Advantage break down exactly what happens when you try to flip properties inside a self-directed IRA or 401K, including the rules that can blow up your entire retirement account if you cross the wrong line.

The bottom line: Self-directed IRAs are powerful tools for real estate investors, but only if you know where the lines are. This episode gives you the map.

Disclaimer: All my opinions are my own. These statements are not meant to be taken as investment advice.

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00:00 – The BIG Myth: Do You Have to Replace Debt in a 1031?
04:24 – How to Pull Cash Out Without Triggering Taxes
04:43 – Cash-Out Refi Timing: What Triggers IRS Problems
05:09 – The “Step Transaction” Rule (What Can Get You Audited)
09:40 – Costly Mistake: Over-Financing & Unexpected Taxes

Many investors are told they have to replace debt in a 1031 exchange, but that’s not always the case. In this episode, we walk through how debt can be offset, when taking cash can trigger taxes, and how to structure transactions the right way.

We also dive into one of the biggest risk areas: timing. A cash-out refinance done too close to a sale or acquisition can raise red flags with the IRS under the “step transaction” doctrine.

You’ll learn when a refinance makes sense, how intent factors into the equation, and why what you do with the money matters just as much as when you take it.

If you’re looking to access equity while preserving your tax deferral, this episode will help you understand the rules and avoid costly mistakes.

You can find every episode of this show on Apple Podcasts, Spotify or YouTube. For more, visit https://www.1031exchange.com/podcasts/

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In this episode, we break down one of the most misunderstood parts of a 1031 exchange: the identification rules.

Many investors know about the 45-day identification deadline, but far fewer understand how the three identification rules actually work or how mistakes during identification can jeopardize an exchange.

We discuss the fundamentals of identifying replacement property, common misunderstandings, and how identification works when investors are acquiring multiple properties, DST investments, or partial ownership interests.

If you're planning a 1031 exchange, understanding the identification process can help you avoid costly mistakes and structure your exchange more effectively.

Episode Timestamps

00:00 Introduction
05:19 Why Identification Confuses Investors
06:02 The 45-Day and 180-Day Deadlines
09:17 Who Receives Your Identification
11:12 How to Properly Identify Replacement Property
19:15 The 3 Identification Rules Explained
26:11 Why You Shouldn't Rush Identification
33:11 Combining Multiple Properties in a 1031 Exchange
41:48 Taking Cash Out of a 1031 Exchange

You can find every episode of this show on Apple Podcasts, Spotify or YouTube. Prime Members can listen ad-free on Amazon Music. For more, visit https://www.1031exchange.com/podcasts/

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