1031 Exchange: A Real Estate Investor’s Best Friend!
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- Опубліковано 8 лип 2024
- When you sell an investment property, you are usually faced with a big capital gains tax bill, if you’ve held the property for more than a year. For properties held for less than a year, you’ll owe ordinary income tax on your gains. Either way, it can be a big tax bill, but there is a way to push that tax bill down the road, and possibly eliminate it altogether with a 1031 Exchange.
As you may know, the 1031 Exchange is a wonderful tax break tool that allows you to sell your investment property and buy a replacement property of equal value or more with the same amount of debt on it or more. By doing that, you can postpone the tax you might owe. Under current laws, if you hold it until you die and pass the property on to your heirs, the value of the property will be stepped up to the current market value, and your heirs will owe nothing on your former tax bill.
In this episode, you’ll hear from long-time 1031 exchange facilitator, Dino Champagne. She’s the Vice President and Division Manager of the Los Angeles office of Asset Preservation, Inc. and has more than 20 years of experience doing more than 15,000 exchanges nationwide. She will explain the three most important rules for a 1031 exchange along with all sorts of other issues that you might encounter and what you can do to deal with them.
If you’d like to get in touch with Dino, click here for her bio and contact information at the Asset Preservation, Inc. website. You’ll also find her listed on our website under 1031 Exchange Facilitators. Please join RealWealth for full access to our data and resources. It’s free to join. Also, please subscribe to our podcast and leave us a review! Thank you!
Links:
Contact Dino Champagne: apiexchange.com/1031-exchange...
Join RealWealth: tinyurl.com/joinrealwealth
Subscribe to the Podcast: tinyurl.com/RWSsubscribe
Beyond impressed with Dino, I did my first 1031 4 months ago and used Asset Preservation aka “Dino’s company”. I called her number through real wealth network contact number and she called me back in 30 seconds (I called her late at night assuming to leave a voicemail). She not only called me back but spoke to me for about 45 mins-hour and at the end of the conversation and answering all of my questions and concerns, I learned she was actually on vacation! That was my first impression; impressed to say the least. Going forward into the 1031 transition, I went from a 4plex in Seattle to a 26 unit in Chicago, and along the journey, Dino and her team Chanelle intercepted multiple situations that I came across that would have voided the 1031 exchange. I confirmed with my CPA and Dino and Asset preservation literally saved me $120,000 this year; they charged me a measly $1200, worth every penny.
Thank you for sharing that, good to know...
We are so happy to hear that!
Your video is so informative by providing 1st hand knowledge and real world scenario. Far more helpful than most other 1031 videos that merely repeat the textbook concept with little substance. Thank you so much! Please make more videos like this!
I cannot believe there are not more comments on this great topic and caliber of information! Great guest with invaluable guidance!
Thank you so much for your kind comment! We're so happy to hear that you found our video helpful. 😊
Awesome amount of knowledge and insight, well worth time to listen to details, so much information taken for granted and so many different scenarios. Thank you.
Thanks Monica, glad it was helpful!
super impressive - thank you !
Glad you liked it!
Very helpful video! How would you file a 8824 form if you sold one rental single family home and acquired two rental single family homes? And paid some amount of money out of pocket for the second home? Thanks
I should put property in trust name before 1031 exchange?
Great content! Thank you! If I own unimproved land (20 acres in central IN) that I have never lived on, is that considered "investment property". I've never made money on it and have owned it (next to my parents home) for 30 years.
You can absolutely sell a lot if it is possible to build on it!
Pardon my ignorance, but what is a DST that you mentioned. Thanks
Great question! A Delaware Statutory Trust is a real estate ownership structure where multiple investors each hold an undivided fractional interest in the holdings of the trust. The trust is established by a professional real estate company, referred to as “DST sponsor”, who first identifies and acquires the real estate assets. Our investment counselors at RealWealth would be happy to break it down further for you in a strategy session. If you aren't a member already, it's free to join and schedule a session. Here's the link: join.realwealth.com. Hope that helps! 😊
Do you have home inspection done on all potential properties?
Absolutely! Our investment counselors at RealWealth would be happy to break down exactly why we do that in a strategy session. If you aren't a member already, it's free to join and schedule a session. Here's the link: join.realwealth.com. Hope that helps! 😊
Is it possible to do 50% 121 Exclusion and 50% 1031 Exchange on single property?
Hi, thank you for your question! Our investment counselors at RealWealth would be happy to answer that for you in a strategy session. If you aren't a member already, it's free to join and schedule a session. Here's the link: join.realwealth.com. Hope that helps! 😊
@realwealth and @kathy, I have California high income earners, Dentists, Optomotrists, who want to invest with me, but are new to rental home investing. Do you have an episode that addresses out of State areas that you like or turnkey with vetted property managers?
Hi Joe! Thanks for your question. We have many episodes about our favorite out of state areas to invest in. Check out our recent episodes on Indianapolis (podcasts.apple.com/us/podcast/real-wealth-show-real-estate-investing-podcast/id883335228?i=1000597941821) and Dallas (podcasts.apple.com/us/podcast/real-wealth-show-real-estate-investing-podcast/id883335228?i=1000585029350z)! Our investment counselors at RealWealth would be happy to connect you with some of these vetted teams. If you aren't a member already, it's free to join. Here's the link: join.realwealth.com. Hope that helps!
my Father has a property ( in ca) purchase 70k now worth 800k its in a family trust... he wants me to take it over but i would pay taxes ... correct.... he is willing to sell and do a 1031 purchase of property (s) in my state so when he does pass the property is in the state i live in..
Hi, great question! That is a very common situation that we hear about at RealWealth. Our investment counselors would be happy to answer that for you in a strategy session. If you aren't a member already, it's free to join and schedule a session. Here's the link: join.realwealth.com. Hope that helps! 😊
So 1031 exchange only applies to investment properties?
Yes. Cannot be done on your primary home/residence.
What she said! 🙌
what is rules for a upreit.
Hi, thank you for your question! Our investment counselors at RealWealth would be happy to answer that for you in a strategy session. If you aren't a member already, it's free to join and schedule a session. Here's the link: join.realwealth.com. Hope that helps! 😊
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