Avoid These Common Mistakes In Your Next 1031 Exchange
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- Опубликовано: 2 июн 2024
- In this video, Toby Mathis, Esq. will explain how to avoid making the most common 1031 exchange mistakes and how to protect your investment. We'll also discuss different ways to deal with a 1031 exchange mistake, so you can safeguard your money and keep your business running smoothly.
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“There are common mistakes that many investors make that can end up costing them big time.” 0:15
What are the most common mistakes to avoid in your next 1031 exchange?
Are you worried about making a 1031 exchange mistake?
Toby Mathis, Esq. goes over the various mistakes he has seen and heard of over the years to better help you establish a grip on your 1031 exchange and protect your investment. Be sure to watch this video as we explain a 1031 exchange.
1031 exchanges aren't always as simple as they may seem. There are a lot of moving parts and things to consider when making a 1031 exchange. The mistakes that Toby Mathis mentions in this video are just some of the many ways you can protect your investment.
By watching this video, you'll have a better understanding of the 1031 exchange and will be able to make an informed decision about whether or not to participate.
We hope you leave our video a thumbs up and share it with your friends. If you have any questions or comments, feel free to leave them below.
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Thanks for watching!
Show Notes:
0:00 Intro
0:36 What is a 1031 Exchange
1:17 Failing to meet strict timelines
3:26 Improperly identifying replacement properties
6:02 Not understanding the 1031 exchange rules
11:47 Failing to consider the tax implications
12:30 Investment Plan
14:45 Outro
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ABOUT TOBY MATHIS
Toby Mathis, Esq. is the best-selling author of Infinity Investing: How the Rich Get Richer And How You Can Do The Same. Toby is a tax attorney and founded Anderson Business Advisors, one of the most successful law, tax, and estate planning companies in the United States. Learn more at aba.link/tobyaba
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The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.
#tobymathis #1031exchange
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Excellent explanation of the 1031 Exchange, Toby. I just shared your expert explanation with one of my clients. Thank you. 🙏
I really appreciate your kind words and for sharing my video with your client. It means a lot to know that my content is helpful to others.
So if your capital gain was initially 500k and say the value of your structure is 400k (you could depreciate 400k/27yrs=14.8k/yr). Say in 10 years you have done multiple exchanges and now your structure’s value is 4M, you can still only claim 14.8k/yr instead of the 148k/yr you would be able to depreciate if not for the original 1031 exchange taxable basis. Of course now you have an asset thats worth 8M instead of 800k… but your cash flow is taking a hit because of the additional income tax caused by the lower depreciation.
Thank you great explanation, still wonder if I could do the exchange from a paid off property and put it towards two investment properties that have mortgage balance.
Excellent video Brother. Thanks for sharing this video.
Our pleasure, thank you for watching!
Thank you for the video, great information. Please I would like to know I have a 1031 exchange property for 4 years. I would like to make it my primary residence. If after living there with my husband for 3 years and later selling it do we have to pay taxes if the price appreciation is less than $500k?
Great insight Tobi . Thank you i will see you at your event
See you at the event!
Wow, Toby, this was great. Thank you.
Glad you enjoyed it!
When purchasing your replacement property, please know that if you are purchasing from a related party (parents, grandparents, siblings) they would also need to do a 1031 Exchange on their sale and both parties would need to hold their replacement property for at least 2 years. I work at a QI and it's amazing how many clients are not aware of this regulation.
your saying family to family purchase & sale on a 1031 you must hold property for 2 years?
I didn't know about it.
You can sell to anyone, even if they are related.
I think I'll just hire someone as smart as him to do the work for me.
I did 7 exchanges in one year. It was a lot of work to locate replacement properties, get the details all lined up, and then pull the trigger. But it's definitely doable. Don't be afraid of it, just plan for the time needed.
Were you the owner or a Realtor?
Why tell Anyone your doing a 1031Exchange? isn’t the QI holding the $ (a check) and just waiting for it to be released to purchase the next property?
Thank you for the video. Question, if I start a process to do a 1031 exchange and then change my mind, when are the capital gains taxes due? Say I sell this year, 2023, do I pay the taxes as soon as I decide not to go thru with it or next year in April 2024?
Thank you so much for your question! We highly recommend you join us at our next Free Tax & Asset Protection Workshop Livestream. Our attorneys and specialists will answer all your questions at no additional cost. Save Your Seat: aba.link/taptoby
Great video. Who do you recommend for a DST? I would like to use a DST as the backdrop in case we can not get a property under contract. We just closed on the relinguished property on 11-17.
Great question, in order to assist you further, I highly recommend you request a free 45-minute consultation to discuss our proven asset protection and tax strategies and how they apply to your unique situation. aba.link/tobyss
Great Video Toby, I have a question that I've never seen answered before. When naming the 3 properties within 45 days, can I name one property at time, or as needed? I was wondering can I go under contract and then officially name the property with the QI, or do I have to name them all prior to going under contract? My strategy is to go under contract on the replacement within days of the close of relinquished property as any transaction will most likely die an inspection death. The inspection will be approximately within a week of contract so it will then be quickly on to the next as I know how fast that clock runs and I want to be able to find that replacement asap. Thank you!
Great question! The 45-day identification period in a 1031 exchange can indeed be a bit time-sensitive, and it's crucial to follow the rules. To discuss the specifics of your situation and get personalized advice, I recommend scheduling a free strategy session with my team. Visit: aba.link/tobyss
I was aware of everything except your mentioning Delaware statutory trust, trust into a writ, and tenant and commons transactions. Do you have more videos discussing this?
My partner Clint Coons made a video that might help you out. ruclips.net/video/Bn5btIbn9H8/видео.html
Mr. Mathis, I have watched dozens of your videos, and I can't seem to find an exact answer to the following scenario: I purchased a piece of vacant land. I will improve the land with a home, size and cost to be determined. I will then sell the improved property. My question is, does the 1 year hold for Long Term Capital Gains start on the date I closed the original purchase of bare land, or does the 1 year hold start on the date of occupancy of the completed improvements? I know that if this was a home built for the purpose of a primary residence, I would have to hold it for 2 years from the date of occupancy of the completed improvements. Thanks for reaching back to possibly answer this one.
Great question, in order to assist you further, I highly recommend you request a free 45-minute consultation to discuss our proven asset protection and tax strategies and how they apply to your unique situation. aba.link/tobyss
🎉 Do you have video on 50% 1031 exchange and 50% capital gain none tax keep?
Thank you so much for your question! We highly recommend you join us at our next Free Tax & Asset Protection Workshop Livestream. Our attorneys and specialists will answer all your questions at no additional cost. Save Your Seat: aba.link/taptoby
who can be a qualifying intermediary?
Toby, if i sell 2 properties at the same time, can i purchase the new property if its greater then the sum of the 2 sold?. What if i improve that property, like do construction towards building a house on it,
That's a great question. For a detailed discussion tailored to your specific situation, I recommend scheduling a free strategy session with our team. We can explore your options and provide personalized advice based on your unique circumstances. aba.link/tobyss
Great video thank you, can I sell a investment property that was solely in my name and purchase another investment real estate property using a 1031 and place the new property in a LLC and still get the tax benefit.
Great question, in order to assist you further, I highly recommend you attend our Free Tax & Asset Protection Workshop where my team of attorneys and specialists will answer all your questions live at the virtual event. Visit: aba.link/49d
"Same Name"
I have exchanged properties that were in my name and replaced the 'sold' property with new property, however, titled the new property in a solely owned LLC and think that's OK. So, John Doe exchanges one property for a new property however the title to the new property is in the name of XYZ, LLC solely owned by John Doe.
What if I own an investment property in the name of a solely owned LLC - we'll call it ABC, LLC - and exchange the proceeds into a new property and title that one in the name of MNO, LLC, solely owned by the same individual that owned ABC, LLC.
Thank you so much for your question! We highly recommend you join us at our next Free Tax & Asset Protection Workshop Livestream. Our attorneys and specialists will answer all your questions at no additional cost. Save Your Seat: aba.link/taptoby
I am Anderson platinum member. I have a property in WA LLC which is held by WY Holding LLC. I am in the process of 1031 exchange. My husband and I are 50-50 partners of WY LLC. When it comes to 1031, who is the tax owners of that property? WY Holding LLC or my husband and I?
It is a good question, my instincts say WY Holding LLC. I hope to hear from Toby.
Does a Sub S corp 1031 get stepped up basis to heirs when you die.
Great question, in order to assist you further, I highly recommend you attend our Free Tax & Asset Protection Workshop where our attorneys and specialists will answer all your questions live at the virtual event. Visit: aba.link/taptoby
How can I get a Qualified Intermediary? Is he/she a real estate agent?
It is a 1031 Qualified Intermediary. There are tons out there that provide that service. It is not a real estate agent. There are quite a few national QI firms, although I tend to ask escrow or title companies who they prefer to use in a particular market.
@@TobyMathis Thanks a lot for answering my question.
The real way to handle things is to build relationships with people who know all this stuff and pay them.
I am Canada But listening to you.. strange
So complex. Need an expert.