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Updated 9 months ago,

User Stats

29
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9
Votes
DJ Brooks
9
Votes |
29
Posts

Deferring taxes if 1031 doesn't work

DJ Brooks
Posted

I have a tax question. I have a financial advisor friend who said he can defer taxes (similar to 1031) from real estate proceeds into a charitable remainder trust or CRT. First, does anyone know if that is true? Now if it is true, my 2nd question is this: Can partial proceeds be used in a 1031 tax exchange and the remaining fund the CRT? For example, say I am going to 1031 exchange 200k into 2 properties to defer my taxes, each being 100k of proceeds, but then 1 sale fell out last minute. Then instead of paying capital gains tax on the remaining 100k, I'd roll it into a CRT in order to defer taxes. Has anyone heard of this being done? Or does anyone have knowledge on why this wouldn't work? Please advise. Thanks for reading! 

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