What You Learn in the 1031 Federal Exchange Free Video Training

A Complete Breakdown of the Free 1031 Exchange Training

The free video training at [1031traininghub.com](https://1031traininghub.com) is the most comprehensive free educational resource available for real estate investors considering a 1031 exchange. Created by attorney Steve Wolterman, CES, the training covers the entire exchange process from the decision to sell through the final closing on the replacement property.

This article breaks down what each section of the training covers so you know exactly what you will learn before you watch.

Section 1: What a 1031 Exchange Is and Why It Exists

The training begins with the fundamentals: what a 1031 exchange is, what Section 1031 of the Internal Revenue Code says, and why Congress created this tax deferral mechanism.

By the end of this section, you will understand:

Why a 1031 exchange is called a like-kind exchange and what like-kind actually means under IRS rules
Why the IRS allows investors to defer capital gains taxes through an exchange
The difference between tax deferral and tax elimination, and why that distinction matters for long-term wealth building
What types of property qualify and what types are explicitly excluded

This section dispels the most common misconception about 1031 exchanges: that you can only exchange one type of property for the same type. The IRS definition of like-kind is much broader than most investors realize.

Section 2: The Timeline in Detail

The timeline section is the most practically important part of the training for most investors. It covers the 45-day identification period and the 180-day exchange period in detail, including:

How both deadlines are calculated and why they run concurrently
What happens if either deadline is missed
How the tax return due date can shorten the 180-day period
A visual timeline showing how the two periods overlap
The one exception that can extend the deadlines (federally declared disaster areas)

After this section, you will be able to calculate your own deadlines given any closing date and understand exactly what is at stake if you miss them.

Section 3: Identification Rules and Strategies

Most investors know about the Three-Property Rule. Fewer know about the 200% Rule and the 95% Rule. The training covers all three with examples of when each is appropriate:

Three-Property Rule: Identify up to three properties of any value. Must close on at least one.

200% Rule: Identify any number of properties as long as the combined fair market value does not exceed 200% of the relinquished property's value. Useful when you want to identify more than three options.

95% Rule: Identify any number of properties with any total value, but you must actually acquire 95% of the total identified value. Rarely used in practice.

The training also covers what constitutes a valid identification (it must be in writing, delivered to your QI, and unambiguously describe the property) and common identification errors that disqualify exchanges.

Section 4: The Role of the Qualified Intermediary

This section explains what a QI does and why the QI is legally required for a valid 1031 exchange. It covers:

Why you cannot use your own attorney, accountant, or real estate agent as a QI
How the QI holds exchange funds in a segregated escrow account
What documentation the QI prepares and when
What to look for when choosing a QI, including the CES designation, attorney oversight, and fund security practices
The difference between an attorney-led QI and a non-attorney QI

This section is particularly useful for investors who are evaluating multiple QI firms. After watching it, you will know exactly what questions to ask and what red flags to watch for.

Section 5: Boot and How to Avoid It

Boot is any cash or non-like-kind property received during the exchange that is not reinvested. Boot is taxable. The training covers:

The two types of boot: cash boot and mortgage boot
How to calculate your boot exposure given your sale price and replacement property purchase price
Strategies for minimizing or eliminating boot
Why receiving even a small amount of boot does not disqualify the entire exchange, just the boot portion

Section 6: Common Mistakes and How to Avoid Them

The final section covers the most common mistakes that disqualify 1031 exchanges or reduce their tax benefits:

Engaging a QI after closing on the relinquished property
Missing the 45-day identification deadline
Submitting an ambiguous identification
Receiving exchange proceeds directly
Failing to replace debt in the replacement property
Using exchange funds for closing costs that do not qualify

After watching this section, you will understand why most exchange failures are preventable and what to do to avoid them.

How to Access the Training

The complete training is available at no cost at [1031traininghub.com](https://1031traininghub.com). No registration required. Watch on any device at any time.

After watching, schedule a free consultation with 1031 Federal Exchange at [1031federal.com/contact](https://1031federal.com/contact) or call 866-455-7268.

Frequently Asked Questions

Is the training current for 2026? Yes. The 1031 exchange rules for 2025 are unchanged for 2026. The training reflects current IRS guidance.

Is the training appropriate for experienced investors? Yes. Even investors who have completed multiple exchanges often learn something new, particularly in the identification rules and boot sections.

Does watching the training obligate me to use 1031 Federal Exchange? No. The training is a free educational resource. You are under no obligation to use 1031 Federal Exchange as your QI.

Can I share the training with my accountant or real estate agent? Yes. The training is publicly available and can be shared freely. Many investors share it with their advisors before their consultation.