Jose explains a strategy many of his long-time clients have used: the so-called “Lazy 1031.”
Unlike a traditional 1031 exchange, which requires a strict 45-day identification period and a 180-day closing window, this approach focuses on timing within the same tax year. The idea is simple: sell the relinquished property and purchase a new one before year-end, creating opportunities to strategically offset gains without the intense deadlines and structural complexity of a formal 1031.
Jose highlights that many investors hesitate because of how complicated a 1031 can feel. For clients who are on the fence about selling, or who may not qualify or want to deal with the administrative burden, this approach can offer more flexibility.
The key question he often asks:
If you’re thinking about selling in the next six months… can you wait and structure it more strategically?
As always, the real advantage comes down to proactive planning and timing. When structured correctly within the same tax year, this strategy can create room to offset capital gains and reduce stress around IRS deadlines.
