All Forum Posts by: Brandon Bruckman

Cool.  I just posted about this on LinkedIn today.  Links to nine real estate CPAs.  https://www.linkedin.com/posts/brandonbruckman_costsegregati...

Patricia - do you need a local CPA or does is location not as important? 

Its CPA time!  

Would you consider adding your friend to the LLC? Would he like to be involved in your next investment?

Or you might be able to restructure ownership as tenant in common.  Then both could 1031 exchange and go your separate ways.  

Thanks for sharing.  #3 is a point I stress often.  The rest of your tax situation can reduce (or eliminate) the need to do an exchange. 

Unfortunately no. The IRS views the syndication as a partnership, not real estate that you own. If the syndicator is willing, they could structure a tenant in common (TIC) agreement for you. Being a TIC member is different than an LP. You will want to understand and be comfortable with the difference.

If that doesn’t work, Delaware Statutory Trusts (DSTs) are basically syndication that is 1031 eligible.   

Ah yes!  The proceeds and tax math needs to work to make QOZ and another investment with the basis appealing or possible.

Thanks Conner - slight correction to your comment, LTV is a consideration for completing a 1031 exchange and investing in DST. QOZ isn't executed in a 1031 exchange, thus there is no LTV requirement.

Passive investor in a larger deal is the easiest way (Delaware Statuary Trust (DST) or Tenant in Common (TIC)).

You could look at Qualified Opportunity Zone Funds (QOZ).  Invest the just the gain and keep the basis to invest in notes.  Of course the original tax bill is due eventually in this structure (2026/2027).

Some important factors for you to consider are: your need for cash flow, passivity vs control, how much tax you want to defer and how important total returns are.   

Great example Dave!  @Jeffrey Fung you can document intent with you CPA and through your pattern of investing behavior.  

Yes.  That should work.