Jump to content

1031 Exchange Question


Recommended Posts

I have an investment property being sold in the near term - said property is an apartment complex that I was part of a syndication deal.  I've kind of lost my appetite for this syndication stuff, so I'm considering using the profits to fund an improvement project at my primary residence.  I understand the rules with "like-kind" are fairly lax, but I'm wondering if I'm risking pretty big financial consequences by not completely understanding 1031.  Is anyone aware if this would be of significant concern? If I needed to obtain a consult of some type - would it be a real estate agent (residential or commercial?) or CPA? 

 

If it is of significance, the home project it would be funding is a backyard oasis.

Link to comment
Share on other sites

Unless you can bring in your former syndication partnership as a 1% LP on your primary residence.  Paperwork will be a pain in the ass and there's that annoying lien.  But your oasis will be your shangri-la.  Hookers and blow poolside, under the palapa.  

  • Like 1
Link to comment
Share on other sites

14 hours ago, Spur08 said:

I have an investment property being sold in the near term - said property is an apartment complex that I was part of a syndication deal.  I've kind of lost my appetite for this syndication stuff, so I'm considering using the profits to fund an improvement project at my primary residence.  I understand the rules with "like-kind" are fairly lax, but I'm wondering if I'm risking pretty big financial consequences by not completely understanding 1031.  Is anyone aware if this would be of significant concern? If I needed to obtain a consult of some type - would it be a real estate agent (residential or commercial?) or CPA? 

 

If it is of significance, the home project it would be funding is a backyard oasis.

ANY real estate agent worth a fuck would tell you to contact your CPA/Attorney.  I know the answer to most of 1031 questions, but I make it a habit to not give tax or legal advice. 

I frequent a small business, and got into a chat the other morning with the owner: a mexican "kid" in his 30's.  He was surprised to learn that I'm a realtor, and I was surprised to learn that he owns several rental properties...he's really living the American Dream.  Working his ass off, and building some wealth.  

Anyway, he told me that he's considering selling one of his properties.  I asked if he's going to do a 1031, and he'd never heard of it.  So, I dropped off a booklet that my title company publishes, told him that he should read it, and gave him the number of a friendly CPA to call if he has any questions.  I hope to get the listing, and of course, I will use an appropriate expert to handle the transaction, but I sure as shit ain't gonna tell anybody any more than that. 

  • Hook 'Em 1
  • Like 2
Link to comment
Share on other sites

10 hours ago, Handcruser said:

Instead of a 1031 look in to a 1032.

Yeah, but what if somebody invents the 1033 exchange?  You see, this is one more.  Our exchanges go up to 1033.  For when you need that extra 'umph' over the edge. 

Link to comment
Share on other sites

You need to reinvest, but it doesn’t have to be into another syndicated deal.  And I believe you can plow it into some REIT stocks designed for 1031’s, but not positive.

Link to comment
Share on other sites

Posted (edited)
3 minutes ago, Lobo said:

Yeah, but what if somebody invents the 1033 exchange?  You see, this is one more.  Our exchanges go up to 1033.  For when you need that extra 'umph' over the edge. 

No man, not 1033.  1032 is the key.  Nobody can make money on a 1033.  

Edited by Sbbruin
  • Haha 1
Link to comment
Share on other sites

10 minutes ago, Sbbruin said:

No man, not 1033.  1032 is the key.  Nobody can make money on a 1033.  

I miss the days of the OG 1030 exchange. Sleek, easy, beautiful really.  So few words, and still tax policy genius. 

  • Like 1
Link to comment
Share on other sites

I miss the days of the OG 1030 exchange. Sleek, easy, beautiful really.  So few words, and still tax policy genius. 

Only on surly can we take a 1031 exchange question and turn it into the lolz.
Link to comment
Share on other sites

Assuming it's long term capital gain, you'll have to pay taxes on it eventually when you cash out. It wouldn't be surprising if that rate goes up this/next year. So maybe cashing out this year, particularly if you have a good use for the funds, might not be a bad idea. 

  • Hook 'Em 2
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share



√ó
√ó
  • Create New...