Biggest Frustrations with 1031 Exchange with Zack Boothe

[Brett P Swarts]

Brett Swarts:

Welcome to another episode of the capital gains tax solutions podcast also streaming Expert CRE Secrets. And this is the quick intro. I'm with my new good friend Zack Boothe. We just finished our full episode, which is actually live on YouTube right now. And it's gonna go live on iTunes here shortly. But in this short episode, we're talking about the biggest frustration with the 1031 exchange. So Zack, what's the biggest frustration you, a client friend, a family member have faced when it comes to the 1031 exchange?

Zack Boothe:

Yeah, with a few that I've done. My biggest struggle or frustration with 1031 was the timeframe. So, once I sold a property, you know, you have the 45 days and all those dates, and I found myself wanting to do a deal not to pay taxes, not necessarily because it was a very financially intelligent move to buy that property. So, I think sometimes people have the tendency to make bad financial decisions just to not pay taxes. So, I think that's it's something you got to be careful of something that I struggled with.

Brett Swarts:

We call it the shotgun wedding, right? Or they let the tax tail wag the investment dog. And the shotgun wedding goes like this, you get engaged in 45 days and married and 180. And oftentimes, when you're selling high, you don't want to buy higher than 180 days, we actually did a recent deal. Or it's actually 2006. Now, they sold before, he said the movie "The Big Short", they literally sold this property no six, they looked around like The Big Short guys did. And I'm like this doesn't make any sense. I'm not going to 1031 this is a deal in Minnesota like a $20 million asset. And they move the funds into the deferred sales trust for the first time. And five years later, that property that they sold was foreclosed on by the bank. So a bank calls them says hey, you want to buy it back? And they said well, maybe what's the price? They said well 60 cents on the dollar from what you sold it for. Okay, that sounds like a pretty good deal. So took the funds from the deferred sales trust kinda like a self-directed IRA or self-directed 401K put into an LLC and then they bought that real estate deal at a discount all tax-deferred. So, I heard that story and I said "Wow!", you can do that without doing a 1031 exchange and then the answer is, Yes. So, thousands of closes later billions under management you can now use what's called the deferred sales trust to get what's called optimal timing when it makes sense for you, by the way, you can learn more about that at capitalgainstaxsolutions.com and the full episode we're covering wholesaling with Zack Boothe. He's out of Utah did a really cool thing he's fine. He flew in like an army trooper into he parachuted into Tampa didn't actually do that. But, he got into Tampa from Utah and in 40 days, his goal is to make $40,000 in wholesaling profits, and you can learn more about what he did and his challenges and about the wholesaling game here in the next full episode. But, Zack for those who want to find you right now and connect with you, what's the best place to find you?

Zack Boothe:

Yeah, go to my website dfdmastery.com and you can click on my social media link and follow me anywhere you want to there or you can book a call and speak with me on that same website.

Brett Swarts:

Amazing and if you want to check out the deferred sales trust and go to capitalgainstaxsolutions.com. Hey, thanks for listening to this short episode by now.

Learn more about Deferred Sales Trust
Visit: www.capitalgainstaxsolutions.com