Using a structured sale to defer the equity boot from a 1031 Exchange

 How about this for a great tax deferral strategy:

A client had $2M in a 1031 Exchange.   They exchanged into a property for $1.7M.   This left them with $300,000 which they assumed would be exposed to taxation.  But not so fast.  The QI got us involved to see what we could do with that $300,000.  We were able to to do a fall back (structured sale with in a 1031 Exchange) with the clients $300,000 of equity boot (humbly called their “scraps”).

So this client was able to have every penny of the proceeds tax deferred.

Chris Princis

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