04/28/2026
A recent situation reminded me how expensive “almost right” advice can be.
A client of mine owned some real estate for several years and recently sold it. The plan was to turn around and buy a condo that would be used part personally, part for business and investment.
They asked their realtor if it would qualify for a 1031 exchange… and were told no.
So they sold the property, closed on the sale, and a few weeks later bought the other property.
Here’s the problem.
That transaction did qualify for a 1031 exchange. But because the steps weren’t structured properly ahead of time, the opportunity was gone.
The result?
Over $50,000 in unnecessary taxes.
But it didn’t stop there.
That large gain increased their income for the year, which directly impacts how Medicare premiums are calculated.
So now, on top of the tax bill, their Medicare premiums are nearly tripling for the next 12 months… adding another $10,000+ in costs they never saw coming.
All from one decision that wasn’t coordinated ahead of time.
This is the kind of ripple effect most people never get warned about. One move impacts taxes, which impacts income, which impacts healthcare costs, which impacts cash flow.
It’s not about blaming the realtor or any one professional. They each play an important role. But no single person is looking at the entire picture.
That’s where planning matters.
Before making big financial decisions, especially around real estate, taxes, or retirement income, it’s worth slowing down and making sure all the pieces are working together.
Because sometimes the most expensive mistakes aren’t bad decisions…
They’re decisions made without a full view of the consequences.
