Posted about 3 years ago

How do you 1031 exchange a rental property sale into a syndication?

This is one of the most common questions I get asked. As you know, taxes alone can eat up as much as 30 - 50% of your hard earned gains!

Unfortunately, the short answer is that a 1031 exchange (IRC Section 1031, which allows an investor to sell a property, to reinvest the proceeds in a new property and to defer all capital gain taxes) can't be done because a syndication is considered a security, not real estate.

The GOOD news is that there are many alternative ways you can tax-defer your gains from a rental property sale into a syndication...or stocks, or a business, or any other kind of investment! Want to sell your stocks, tax-defer the gains for 30 years, and reinvest in real estate? That can be done too!

There are so many legal ways to be smart about taxes that most people aren't aware of, like Deferred Sales Trust, Monetized Installment Sale, Delaware Statutory Trust, 401k backed C-Corps / IRA backed LLCs, and much more!

Sounds like a lot? Digging into the details of each strategy to find what's best for your unique situation is a lot of work. That's why we're bringing together a panel of experts who represent each of these strategies at our flagship BACOMM event!