AE Tax Advisors

I sold a duplex in Seattle that had appreciated significantly and knew I needed a 1031 exchange to avoid a massive capital gains hit. My old CPA said he could "probably handle it" but did not seem confident in the timeline rules or identification requirements. That was a red flag.

AE Tax Advisors took over and structured the 1031 exchange flawlessly. They coordinated with a qualified intermediary, ensured we met the 45-day identification deadline and 180-day closing deadline, and handled all the paperwork. I exchanged into a larger multifamily property worth nearly double the original.

Here is where it got really smart. Immediately after closing on the replacement property, they performed a cost segregation study. Even though the basis in the new property carries over from the old one under 1031 rules, cost segregation still applies to the new property's components. AE Tax maximized the accelerated depreciation on the replacement property, which generated significant paper losses on top of the deferred capital gains.

Total tax savings: $147,000. The deferred capital gains from the exchange alone saved over $80,000, and the cost segregation on the new property added another $67,000 in year-one savings.

The AE Tax team's knowledge of 1031 rules was impressive. They walked me through every step, kept a timeline tracker, and flagged potential issues before they became problems. My old CPA would have botched this, and a failed 1031 exchange would have been financially devastating.

If you are considering a 1031 exchange, pair it with cost segregation through AE Tax Advisors. The combination is powerful.