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American Accommodators is an Independent, Full Service, Qualified Intermediary for 1031 Exchanges.

06/22/2026

WHAT INVESTORS GET WRONG ABOUT TAX DEFERRAL

Many investors hear "tax-deferred" and assume it means "tax-free." It doesn't.

A 1031 exchange can be a powerful strategy for preserving capital and growing your portfolio, but only when it's structured correctly. Taking cash out, choosing the wrong property, or waiting until after closing can put your deferral at risk.

The real advantage? Keeping more of your equity working for you today instead of losing momentum to immediate taxes.

Before you sell, make sure you understand the rules.

06/19/2026

1031 EXCHANGES DON’T ELIMINATE TAXES

They defer them.

A 1031 exchange can be a powerful real estate strategy, but it’s important to understand what it actually does. It doesn’t erase the tax bill forever. It pushes the gain forward into the replacement property through an adjusted basis.

That means more capital can stay invested today, helping investors continue building and repositioning their portfolios over time.

But if you sell later without another exchange, the deferred tax may come due.

The real power of a 1031 exchange is not tax elimination. It’s tax deferral with a long-term plan.

06/18/2026

How Depreciation Recapture Affects Your Sale

Depreciation can be a powerful tax benefit while you own an investment property — but it does not disappear when you sell.

When the property is sold, the IRS may recapture some of the depreciation you claimed, which can create an unexpected tax bill on top of capital gains.

That’s why it’s important to look beyond just your profit.

Before selling, know your numbers:
Purchase price
Adjusted basis
Depreciation taken
Sale price
Potential taxable gain

A properly structured 1031 exchange may help defer both capital gains and depreciation recapture.

Before you sell, talk with your tax and exchange professionals so you understand the full picture.

06/16/2026

1031 Exchange vs. Paying Capital Gains: Which Makes More Sense?

Selling an investment property comes with an important decision: should you pay the capital gains taxes now, or use a 1031 exchange to defer them?

Paying the taxes can give you more freedom and liquidity right away. This may make sense if you need cash, want to simplify your finances, or are ready to step away from real estate investing.

A 1031 exchange may make sense if your goal is to keep growing your portfolio. By reinvesting into another investment property, you may be able to defer taxes and keep more of your capital working for your next purchase.

Neither option is automatically better. It depends on your goals, timeline, cash needs, and long-term investment strategy.

Before making a move, run the numbers and understand the trade-offs.

Strategy beats guessing.

06/10/2026

CAN YOU 1031 INTO A DELAWARE STATUTORY TRUST?

The short answer: Yes, in certain situations, a Delaware Statutory Trust (DST) can qualify as replacement property in a 1031 exchange.

For investors looking to defer capital gains taxes while reducing day-to-day property management responsibilities, a DST may offer access to professionally managed, institutional-quality real estate. It can also provide flexibility when identifying replacement property within strict 1031 exchange timelines.

However, DSTs are not suitable for every investor. Limited control, fees, liquidity restrictions, and investment risks should all be carefully evaluated before making a decision.

Before completing a 1031 exchange into a DST, conduct thorough due diligence and consult with your CPA, financial advisor, and qualified 1031 exchange professionals.

06/05/2026

WHAT IS MORTGAGE BOOT?

Mortgage boot is one of those 1031 Exchange terms that can quietly affect your tax outcome.

In simple terms: if you reduce your debt in the exchange, the IRS may treat that debt relief like money received.

For example, selling a property with a $400K mortgage and buying a replacement property with only a $250K mortgage could create a $150K difference — and that difference may become taxable boot.

That’s why investors need to review the numbers before closing.

A 1031 Exchange can be powerful, but only when debt, equity, purchase price, and cash received are properly planned.

06/04/2026

Why Debt Matters in a 1031 Exchange

Debt can play a bigger role in a 1031 Exchange than many investors realize.

It’s not just about buying a replacement property at the right price — your loan payoff, replacement debt, and reinvested proceeds all need to line up to help preserve full tax deferral.

A lower loan balance on the new property may create taxable boot if it is not offset properly.

Before closing, review the full picture:
sale price, debt payoff, new loan amount, cash invested, and net proceeds.

The numbers matter — and debt can quietly create taxes if you are not careful.

06/01/2026

Can you take cash out during a 1031 exchange?

Yes — but it may come with a tax cost.

A 1031 exchange is designed to keep your sale proceeds moving into another investment property. If you take cash out, that cash may be treated as “boot,” which can trigger taxable gain.

That does not always mean cashing out is wrong. It just means you should understand the tax impact before making the move.

If your goal is full deferral, reinvest the proceeds.
If your goal includes cash out, plan for the taxes.
Always speak with your CPA or 1031 exchange advisor before structuring your exchange.

05/29/2026

The “equal or greater value” rule sounds simple — but it can have a big impact on your 1031 exchange.

If your goal is full tax deferral, your replacement property generally needs to be worth as much as — or more than — the property you sold.

Buying down in value, taking cash out, or replacing less debt may create taxable boot, which means part of your gain could become taxable.

The takeaway: before you buy a lower-priced replacement property, make sure you understand how it may affect your tax deferral.

Always consult your CPA or 1031 exchange advisor before making a decision.

Save this as a quick reminder before your next exchange.

05/28/2026

Do you really have to buy a more expensive property in a 1031 exchange?

Not always.

But if your goal is full tax deferral, value matters. In general, you’ll want your replacement property to be equal to or greater than the property you sold — and it’s not just about purchase price.

Cash left over, reduced debt, or buying down in value may create taxable boot, which means some taxes could be due.

The key idea: reinvest fully, replace your equity and debt, and keep your capital working.

Always talk with your CPA or 1031 exchange advisor before making a move.

Address

Atlanta, GA

Telephone

+14045009884

Website

https://www.aa1031.com/

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