In this episode, host Dani sits down with 1031 exchange expert Bill Aster, CEO of Exiter 1031 Exchange Services and Exiter Trust Company, to unpack one of the most misunderstood areas of U.S. real estate investing: how foreign investors can successfully complete a 1031 exchange while navigating FIRPTA withholding rules.

Bill explains the essential foundations of a 1031 exchange — from qualified use and like-kind requirements to reinvesting the full net sale price and keeping the same taxpayer on both sides of the transaction. From there, the conversation dives into the unique challenges facing foreign investors under FIRPTA, which typically requires 15% withholding of the gross sale price and can significantly limit available reinvestment funds.

Listeners will learn practical strategies to work around FIRPTA hurdles, including applying for an IRS Certificate of Exemption, self-funding the withholding at closing, and structuring ownership through certain U.S. entities to avoid withholding altogether. Bill also stresses the importance of working with professionals experienced in FIRPTA and international tax rules, given the complexity and tight timelines involved.

Whether you're a foreign investor buying U.S. property or an advisor working with global clients, this episode delivers clear guidance to help you plan, structure, and execute a fully tax-deferred 1031 exchange.