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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