Ep 146 - Mastering 1031 Exchange • The Tax Surprises

Ep 146 - Mastering 1031 Exchange • The Tax Surprises

From Homeowners Best Real Estate Moves by Judy Casad

February 24, 2026 · 27 min · Episode 146

About this episode

This episode discusses the hidden tax risks associated with 1031 exchanges for investment properties.

Are you selling an investment property in 2026? Before you list, you need to understand the hidden tax risks inside a 1031 exchange strategy. In this episode of the Mastering 1031 Exchange Series , Judy Casad and Qualified Intermediary Milissa Ormiston-Hall break down these key topics: • Cost segregation explained in plain English • Bonus depreciation and why it can backfire • Depreciation recapture and ordinary income tax • Why breaking even doesn't mean zero tax • Gain vs. equity (and why investors confuse them) • How prior 1031 exchanges lower your cost basis • Where to find your adjusted basis (IRS Form 8824) • The key questions to ask your CPA before selling Many investors assume if they don't walk away with much cash, they won't owe taxes. That assumption can be very expensive. If you own rental property, commercial property, or income-producing real estate, this conversation could protect you from a surprise tax bill. Explore the full Mastering 1031 Exchange Series here: 👉 bit.ly/mastering-1031-exchange Milissa Ormiston-Hall, A Qualified IPES Intermediary [QI], Investment Property Exchange Services, INC 503-367-6701. Milissa.Ormiston@ipx1031.com…

People in this episode

Host: Judy Casad

Guest: Milissa Ormiston-Hall

Topics covered

Mentioned in this episode

Organizations: Investment Property Exchange Services, INC

Books & works: Mastering 1031 Exchange Series

Places: IRS

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