Hello BP panel,
I have a question about capital gain taxes -I recently sold my (3) multifamily properties, netting me about $500-$800k.
I started with the intention of conducting a 1031 exchange (still ongoing with escrow and exchange accommodator)
As I have not been able to find anything appealing in the current market (San Diego CA) I'm tempted in exploring the option of keeping my gains cash and look patiently for an opportunity.
However I'd have to pay taxes on my gains -could anyone recommend q strategy or an experienced CPA how can review my case to minimize tax payments.
Thank you in advance for your time -
Hi @Felipe Guerra ,
I will send you a PM with some referrals to good CPAs in San Diego that know real estate and 1031 Exchanges.
I have referrals for CPAs in San Diego if you're interested. Not sure how much there is to be done to reduce your taxes now that the transactions are already completed, and if the sales took place in 2020 that you only have a few weeks to take steps to reduce any taxes, if you even can, but I'm happy to send you some referrals if you would like.
*This post does not create an attorney-client or CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.
Hi @Felipe Guerra ,
Section 1031 works in conjunction with Section 453 (Installment Sale Code). This means that the funds held in/by your Qualified Intermediary are similar to a promissory note. The QI either acquires replacement property on your behalf or they return the funds to you. Depending on when you have the "right" to access or receive your funds from your Qualified Intermediary pursuant to the Treasury Regulations, you may be able to defer the tax into 2021, too. I would be happy to chat with you about this if you like.
@Bill Exeter thank you!
@Katie Lepore I appreciate your help; yes please send CPA referrals. Thank you
@Bill Exeter thank you for your reply -please let me know the best way to contact you.