Halfway through the Year: Is your Current investment property working as hard as the Next one could be?

by Maura Snabes, Esq., CES, NTP

We're officially halfway through the year. If you're considering selling investment property in 2026, July is a good reminder that tax planning isn't just something to think about in December or at the time you are ready to list your property for sale. Now is the time to start planning—not when you're under contract.

If you're considering selling investment real estate this year, the decisions you make before listing the property can have a significant impact on your options later.

A well-planned 1031 exchange can help investors:

• Defer capital gains taxes

• Consolidate or diversify holdings

• Move into properties with stronger income potential

• Better align a portfolio with long-term goals

The most successful exchanges don't begin after a purchase agreement is signed—they begin months earlier with thoughtful planning and the right team.

A CPA can help determine whether a 1031 exchange is the best choice compared with alternatives, especially if you have:

• Capital losses that could offset gains.
• Lower-income years that may reduce tax rates.
• Estate planning goals.
• Plans to refinance, gift, or eventually sell the replacement property.

Corporate Exchange Services frequently joins conference calls with the taxpayer and their CPA or tax advisor to help ensure the exchange is properly planned from the outset. A productive pre-planning meeting with your QI and CPA typically covers:

• Whether the transaction qualifies.
• Estimated taxable gain if you do not exchange.
• Replacement property price targets and debt requirements.
• Identification strategy and backup properties.
• Financing timeline.
• Closing cost review.
• Ownership and entity structure.
• Calendar of critical deadlines and responsibilities.

Bottom Line: A little pre-planning in the beginning, means for a successful 1031 exchange for the taxpayer in the end.