All Forum Posts by: Carolyn L.

@Loren Whitney 

Thank you for your comments. I think I've confused the issue a bit - my apologies! Let me try to clarify: I do not want to sell the existing units to the IRA. I want to use the cash proceeds to purchase real estate during the 2015 tax year. Lets call that bucket #1. This will be subject to capital gains tax, so I'm looking for the best way to use these funds to offset this. My thought is either as transactional funding to acquire cash flowing assets (buy/hold or flips) or as secured collateral with a private lender for a LOC for the same purpose. I suppose, if at the end of the 2015 tax year, we have a tax liability, we could make contributions to our existing employer plans, and or separate brokerage IRA.

I do want the IRA or solo 401k to purchase the new subscription. This is totally and completely separate funds from the first sale. An existing 401k account from former employer that would be converted. Call it bucket #2. To answer your qualification questions, we do not have any control, management, and are not employees or contractors. We have a very minor stake - it's completely passive. I believe it would qualify. Am I missing anything in this assumption?

I am reviewing three custodians that I'm familiar with via my local REIA and BP, but have not made a final decision yet. I'm very happy to add New Direction IRA in the review process and see how they compare. Any advice is much appreciated!

@Bill Exeter Thanks for commenting!  I've been on your website quite a lot lately, as you are my "go-to" for 1031 questions.  While I'm aware, based on your earlier advice, that an exchange of shares for real property is prohibited, I thought perhaps there would be a way to offset the sale of existing shares with a purchase of a new subscription. It can be a confusing topic!  We are lucky to have people like you and @Brandon Hall on the site sharing your expertise.

@Brandon Hall thanks again for your help and in-depth explanation.  I appreciate your offer of assistance.  Will keep you posted in the event I need to take you up on that!

@Arnie Guida 

Too funny! It's the beauty of NNN commercial real estate, my friend! That's over a 12 year period. The group has an excellent acquisitions and portfolio manager. It's time for us to build our own private portfolio - but will still remain in the group with the stock split.

@Brandon Hall  New shares will definitely be held separately. Will consult with the group's attorney, too.

@Sean T. Thanks for weighing in, as well!  Always great to get another perspective.  I'm hoping that by reinvesting the cash proceeds from the first sale (separate from the SDIRA funds), into cash flow rentals we might offset some of the gains. 

@Brandon Hall 

Thank you so much for your reply!  I really do appreciate the detail, as it usually leads to further questions and clarification.

With regard to selling our interest in the LLP, if it's worth noting, we own a very minor percentage of the holdings. We do receive and file the annual Schedule K-1, so we are aware of the adjustments. I will be sure to discuss the issues you point out with the group's CFO prior to making a decision.

With regard to buying additional units, does it make any difference in the "blended" tax basis rule if the new shares are purchased in the name of a self-directed IRA or solo 401k, and therefore, a separate identity from our original purchase in our personal names?

Thanks again!

We own shares in a private real estate LLP, with an opportunity to sell these units and reinvest the cash proceeds to purchase our own cash flowing rental properties. The per unit basis is $3,100; the new 2015 value is $14,900 per unit (accumulated over 12 years).

We also have the opportunity to subscribe to new shares in the same LLP at a 3:1 split, with a minimum number of 10 units, and 2-year holding period. The subscription deadline is 12/19/14. I'd like to use a self-directed IRA to purchase the new shares.

Looking for capital gains tax strategies and advice on any potential 1031 exchange, etc.

@Joshua Dorkin Happy Birthday BiggerPockets!  How fortunate for me that we share the same birthday!  A few years your senior, but I've learned so much from you in such a short time.  Thank you!  Wish I could attend the party, but I'll be raising a glass of bubbly to you tonight!

Congrats @Joshua Dorkin , @Brandon Turner and the BP team!!  Thanks to you and all the awesome members here, you've provided a safe, friendly and professional environment for anyone who wants to learn about real estate investing.  Since moving across country, leaving family and friends, a really wonderful employer and team of co-workers, pursuing a new avocation and making a transition to entrepreneur can be pretty tough.  I'm so proud to say that the BP community has become my new virtual team of co-workers and friends!  You all make the journey so much fun and I'm grateful to everyone who is so generous with their time and knowledge - and friendship.  What an amazing group you are!  Thank you!

Definitely a walk-in shower with separate tub.  Bubble jets are easier to maintain than full jetted tubs, and can accommodate bath products.  I would recommend a heated tub model if you're doing a high end flip.  As @Bill Gulley points out, the water gets cold after a very short time.

Good luck!

@Karen Margrave 

 Thanks for making this happen!  Very excited to read the "Diaries"!