Hello, my friends. And welcome to another episode of Passive Real Estate Investing. I'm your host Marco Santarelli. And I decided to do another episode of rapid-fire listener questions. I did one last week, I picked about four questions. I had some great feedback, so I thought I would do it again. I've picked about a handful of questions covering different topics so I could mix it up, but the feedback was great. And I thought, well, I'll just pick some more and cover them quickly concisely and clearly, so we can just cover a bunch of ground, cause I'm sure there's a lot of people who have similar questions to some of the people who submit their questions to me before I get into those.

I just want to say that I'm proud to have our podcast picked as one of the 8 Best Real Estate Investing Podcasts by US News and World Report.

Yes, that's the one usnews.com. So they just picked this less than four weeks ago. I knew about it, but I forgot about it. I was going to mention it in a previous episode, but yes, we are one of the supposedly by Paulina Likos, she's an investing reporter at US News and World Report. And she, I guess, likes our podcast. So she named it one of the 8 Best Real Estate Investing Podcasts in the US, so THANK YOU VERY MUCH!

Download your FREE copy of The Ultimate Guide to Passive Real Estate Investing.

If you missed our last episode, be sure to listen to Rapid Fire Listener Questions

Get your FREE coffee mug by leaving us a Rating and Review on iTunes.  Here's how.

See our available Turnkey Cash-Flow Rental Properties.

Please give us a RATING & REVIEW   (Thank you!)

SUBSCRIBE on iTunes  |  Stitcher  |  Podcast Feed





All right. So the first question is from John and John writes and he says, Marco, first, I love your show and want to thank you for all the insight and education you provide. My question is, do you think 1031 exchanges will be eliminated soon by Congress? Good question.

This is just my opinion. I don't think it will be eliminated anytime soon. In fact, it's hard to imagine that's going to be eliminated anytime in the foreseeable future, the 10 31 exchange has been around for nearly 100 years, and it has constantly been under attack by different administrations, both federal and state level. And they have always been trying to eliminate or significantly modify the 10 31 exchange, which as most, if not, all of you know, is essentially just a tax-deferred exchange that allows you to take the proceeds or net proceeds of a sale and move them into some other like kind exchange. So that way you can continue to move your investments forward without being penalized by taxes in the process of doing so. But this has been under attack multiple times, even in different tax reform acts from 2014 to 2015, and there were budgets under the Obama administration that tried to modify or remove it.

It's just going to continue. In my opinion, it's important for us. It's been around for a hundred years. It's a critical piece of the US tax policy. Everybody who's part of the 1031 exchange does pay taxes. They pay taxes in many other ways. So it's not that they are working and living completely tax-free, that's not the case at all. It's just a way for them to defer their taxes so they can build more wealth over time. And at the end of the day, it is undeniable that the benefits that come from the 1031 exchange, which is part of the IRS tax code is good for the economy. It stimulates economic activity. And if it wasn't for the 1031, there wouldn't be as much activity. And the velocity capital would be much slower. So this is a good thing. It expands our economy expands the workforce.

It expands your net worth. I think there would be some very significant backlash if politicians seriously tried to remove the 10 31 exchange. So I don't foresee it changing or going away anytime soon. So thanks for the question, John.



Next question from Robin. Robin writes in and says,