Capital Gains Tax Solutions
Capital Gains Tax Solutions
Hi, Brett Swarts from Capital Gains Tax Solutions. We're going to talk about exactly how you can save a failed 1031 exchange.
So how do you do it?
The way that tax deferral works is by not taking constructive or actual receipt of the funds.
Someone tells you about a live deal that just closed. It was a 128 unit apartment complex, and the gentlemen had about four and a half million dollars of debt. He decided to use the deferred sales trust for the first time so his equity was sitting at the trust company and he has done a 1031 exchange. He would have had to move to another piece of property but since he had sent the money to the exchange, he hasn't seen yet actual receipt of the funds or constructive receipt. That's the way the qualified intermediary works instead of going directly to his hands.
Now, he's not buying any property, not doing a 1031 exchange. He simply has the funds sent to the Deferred Sales Trust, still maintaining non-constructive receipt. They're not an actual receipt. The funds are in a deferral state.
Now you can invest it into stocks, bonds, mutual funds, hard money lending, apartment complex.
He wants a syndication deal, to do it all without having to take on any more debt or not go into something yet at a timing that doesn't make sense for him. It saves a failed 1031 exchange by simply having the exchange company send it to the trial. It's as simple as that.
We've done a couple thousand of these over 24 years... 14 no change IRS audits, private letter rulings, national law firms. They've all reviewed this. We've had not one single issue with the IRS.
If you're in a 1031 exchange right now, and you're considering not buying you because can't find a deal. You're not sure if deals are going to drop in value due to what's happening in this Corona crisis?
We encourage you to reach out to us today and connect with us so we can, we can save your failed 1031 exchange.
We can reduce your risk, give you diversification, liquidity, and an optimal timing. So reach out to us today.
Question: How to save a failed 1031??
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