All Forum Posts by: Michael Skoczylas

@John Flanders You could try that with the 2 properties; sometimes sellers do not like that, but it is definitely worth a try. Once you have a signed contract you can start the 1031 process. It is a quick process, and does not take long. I work for a QI - so let me know if I can help. 

@Hailey Brown You were reporting all the income? or just 50% of the income? Was it in you individual names? 

That sounds like a good plan. As @Wayne Brooks stated- a 1031 is doable within a few months, particularly if you can show that your intent was to use as a STR and not just a flip. The proceeds can be used to identify both properties and put your down payment on each of them- and finance the rest. I do not see an issue with this plan as long as you show some sort of intent to use as an STR. Let me know if I can answer any other questions. I should add- since its only a few months you would not get the benefit of LTCG treatment, so the plan is a really beneficial one if you can show the intent.

@Hailey Brown This is very unfortunate- and should not happen. But I think the first question is how the first property was titled - you say she is your "partner" but is it a tax partnership? or were you guys tenants in common? I think that will be the most important question to figure out before you proceed. But once you figure that out- it should be an easy fix. Report on your taxes how you intended to do it and fix it with a quiet title action to you and your partner (or however it was owned). 

Good luck- and good catch. While this may be frustrating, it is fixable, and should not ruin your- or her 1031.

Lots of Questions here. 

The first question is really whether or not you have the capital gains to put into the QOZ Fund to take advantage of all of the benefits. You need to "re-invest" capital gains into a qualified opportunity fund in order to get all of the benefits. Once that threshold is behind you then you need to self-certify as a QOZ fund. While right now the certification is not very difficult, there are some bills in congress to require reporting on the social impact of the investment, and who knows what that will look like, but for now, the form is pretty simple. If held for 10+ years you get all of the benefits of the legislation and as you said, all of your gains would be wiped out if sold (actual language is that your basis is increased to the FMV of the property on the date of sale). If you have further questions, feel free to message me.

Your guess is most correct. When doing a 1031 you have to have the same "taxpayer" that sold property buy property. There are several ways to use your 1031 proceeds and still buy the property "with" your father. You can either each buy a representative tenant in common interest (TIC) in the property, and then subsequently (many different opinions on how long this period has to be) each contribute your TIC's into a new LLC. Banks are generally OK with this structure for financing as long as the property gets unified within a certain time-period.

Another way would be to purchase it yourself and then have your father buy into your LLC.

Depending on the deals you have currently negotiated, all, or none of these options may work. 

Feel free to reach out with more questions or specifics. 

Happy to help. 

@Dave Foster @Suly B. I tend to agree with Mr. Foster on his analysis of your question here. I do somewhat disagree on the last part. While there is some consternation from some professionals on whether cost seg. converts the property from real property and therefore it is no longer 1031 eligible since it is not "real property" I believe that most state laws (on which 1031 has based its definitions in the past) still consider that property real property and not personal property. Likely more for selfish revenue reasons, but I still believe that property would be 1031'able (with some special rules for replacing it). 

@Clayton Mobley feel free to use it. 

@Tommy Sowell Real Property based in the US is like-kind to other real property based in the US. Foreign property is like-kind to foreign property. So you can continuously "swap till you drop" slightly less morbid than @Clayton Mobley's line- although the same strategy.