JUNE MARKET UPDATE 2026 — Transcript

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1. 0:00Hi, it's Jim Allison, Dunes Realty.
2. 0:02Normally, I'd be showing you Dunes
3. 0:05market numbers, but unfortunately, our
4. 0:07local MLS is down. And rather than
5. 0:10sharing something that's incomplete or
6. 0:12too much speculation, I'm going to wait
7. 0:14till they're accurate and share it with
8. 0:15you then. In the meantime, I'm going to
9. 0:18share a video about 1031 tax-free
10. 0:21exchanges and how they work for you.
11. 0:23Talk to you soon.
12. 0:25Hi, Jim Allison, Dunes Realty. Today's
13. 0:28topic is to a 1031 tax-free exchange. I
14. 0:31get a lot of questions about this, and
15. 0:33we do a lot a fair amount of them. Not a
16. 0:35lot, but a fair amount to have some
17. 0:37experience. The number one advice is
18. 0:40talk to your lawyer or talk to your
19. 0:43accountant. You'll want to hire what's
20. 0:46called an intermediary. That person
21. 0:48holds the funds in between the sale of
22. 0:51property A and the purchase of property
23. 0:53B. But in general, this is how it works.
24. 0:56If you purchase something sometime ago,
25. 0:58whether it's last week or 10 years ago,
26. 1:01let's just say you buy it for $500,000.
27. 1:04And that value's gone up to a million
28. 1:06dollars.
29. 1:07Instead of selling and paying taxes on
30. 1:10your gain,
31. 1:11you can defer that and essentially
32. 1:13purchase something else. So, what you
33. 1:16have to do
34. 1:17is make notice of that in the agreement,
35. 1:20the purchase agreement with whoever's
36. 1:22buying your property, that you're doing
37. 1:24a 1031 tax-free exchange at no cost to
38. 1:28the buyer. So, you've you've made a
39. 1:30public record of it. You might get
40. 1:31advice that you want to tweak that
41. 1:33sentence to be a little bit different.
42. 1:35The second part is you don't want to
43. 1:37touch the money. The attorney who closes
44. 1:40on your property sends that money to the
45. 1:43qualified intermediary. And he must be
46. 1:45qualified and have some accreditations
47. 1:47to do it. They hold your money.
48. 1:50And when you go to purchase something
49. 1:51else, that person is notified, and
50. 1:54they're going to fund the something
51. 1:55else, so you never touch it. If you do
52. 1:57touch it, then you've negated the the
53. 1:59benefit of this. The second thing is
54. 2:02when you go to contract selling your own
55. 2:04property, you've got 45 days to identify
56. 2:08another property. And you've got three
57. 2:10options.
58. 2:12Again, reach out to your
59. 2:13intermediary because there's some tweaks
60. 2:15on that. There's a couple different
61. 2:17examples of how you identify property.
62. 2:20Once you
63. 2:21purchase your new property, you've got I
64. 2:24say this, once you start shopping and
65. 2:26the the ones you've identified, you've
66. 2:28got 180 days to close on the new
67. 2:30property. If you go past that 180, you
68. 2:33negate the whole
69. 2:35tax-free issue of it.
70. 2:37But that's the whole deal.
71. 2:39Bring experts into it. Don't try to do
72. 2:42it yourself. Hire the intermediary and
73. 2:44get advice from your accountant or your
74. 2:47closing attorney.
75. 2:48Talk to you soon. Jim Allison, Dunes
76. 2:50Realty. Have a great day.