All Forum Posts by: Troy Danno

Thank you all!! @Cal Dunagan @Katie L. @Lauren Speidel @John Warren

Very helpful.

@Katie L. I will reach out to you later today if that works? Would love to discuss. 

Hello BP Community—hoping to get some help here on a 1031 exchange.

I am currently considering selling one of my investment properties that I had purchased prior to my wife and I being married. I am the only one on the deed/title.

Ultimately I would like to get her on the deed of the new property we use the exchange for but am not sure how to do that as I believe it can only be in my name for the 1031 to qualify (at least to start), and just as important, we would like to purchase the new property and put it into an LLC for more liability protection/tax purposes.

Can I put the property into an LLC? Are there any tax ramifications? Does this disqualify the exchange in any way? Any specific steps? Again, I was sole owner and want to make sure I can use an LLC for the property and then eventually get my wife on there as well, maybe through the llc?

Last question! I did create and operate an LLC on my rental I am selling, however I never put it on the deed. I used it for my leases, tax time, write offs, etc. Can I continue to operate that LLC for my new properties vs starting a new LLC? The property I am selling is in Montana, and that is where my LLC is based out of. I ask because the new properties I will be purchasing with the 1031 won’t be in Montana so not sure if that will matter and I will not be a MT resident, only operating the LLC out of MT. Sorry, I know a lot to unpack but hoping someone can assist.

@Paul Moore thank you! Yes, I am already finding out this will be a bit tight of a timeline!  Thanks for the advice. Its a bit crazy out there right now, so searching becomes more important now than ever.

@Michael Plaks and @Dave Foster  Thank you both! Very helpful and insightful. Very much appreciated.

Sounds like all will be well on both of these. I actually spoke to a very qualified and great Real Estate CPA today as well (another Bigger Pockets recommendation) and worked through it for more peace of mind and all shall be good!

Thanks to all. More knowledge for future deals!

@Alex Olson thank you, that would be great if you have a recommendation. 

@Jon Schwartz Thank you!!! I will reach out!

Seeking Real Estate Accountant/Tax Consultant

I am in Burbank CA, and finally growing my real estate portfolio enough that  I need professional tax advice/accountant. I have pending real estate sales this month and questions surrounding those and tax implications etc. 

Need accountant versed in real estate tax, etc.

Please let me know if you know any solid players!

Hello BP Community!  I am in need of some advice/knowledge on Capital Gains Taxes pertaining to my personal situation.

My wife and I currently live in CA and are planning to sell our primary residence in the next month. We are also planning to sell one of our investment properties (located in Montana) this month as well.  We do plan to utilize and use a 1031 exchange on the investment property to defer the capital gains on that sale.  However, we have been fortunate to also gain some serious equity in our primary residence in CA and want avoid paying those capital gains. I am here because we haven't lived in our primary residence for 2 years (just short), which i know is one of the requirements for the $500k capital gains allowance for couples.  However, I did find some extenuating circumstances provisions on the IRS website that make it look like i will still be able to get this done.  Wife on unemployment due to covid, etc. So i think that will get us on the track to get the capital gains exception, at least a partial percentage which would cover us as we dont need the full $500k.

Anyway,  my questions and concerns:

1. Can you do a 1031 exchange and also sell your primary residence the same year without capital gains?  Defer them on the 1031 exchange and then completely avoid them on the primary residence sale? I havent been able to pinpoint much clarity around this and didnt know if a 1031 would interfere with the capital gains of selling a primary residence or vice versa.  Simply put--in a perfect world i want to know if i can perform both sales and not have them interfere with each other at all on capital gains.

2. Has anyone else had a similar situation trying to avoid paying capital gains on the profit of a sale of priamry residence not owned/lived in for the required 2 years?  My wife and I, by the time of the sale, will have owned and lived in the property for 17 months. I scoured the IRS website and seems I found an area that i can use to get us qualified for the exception since we dont qualify for the 2 year piece.  My wife went on unemployment as COVID hit her industry hard and hasnt worked for a few months.  I assume the IRS will eventually put some literature out regarding COVID and impacts on capital gains, but odd situation and i want to make sure we can use every piece of intel to make this sale go well and avoid the capital gains. 

Any help/insight would be extremely appreciated!

Thank you all! 

Hello BP Community!  I am in need of some advice/knowledge on Capital Gains Taxes pertaining to my personal situation.

My wife and I currently live in CA and are planning to sell our primary residence in the next month. We are also planning to sell one of our investment properties (located in Montana) this month as well.  We do plan to utilize and use a 1031 exchange on the investment property to defer the capital gains on that sale.  However, we have been fortunate to also gain some serious equity in our primary residence in CA and want avoid paying those capital gains. I am here because we haven't lived in our primary residence for 2 years (just short), which i know is one of the requirements for the $500k capital gains allowance for couples.  However, I did find some extenuating circumstances provisions on the IRS website that make it look like i will still be able to get this done.  Wife on unemployment due to covid, etc. So i think that will get us on the track to get the capital gains exception, at least a partial percentage which would cover us as we dont need the full $500k.

Anyway,  my questions and concerns:

1. Can you do a 1031 exchange and also sell your primary residence the same year without capital gains?  Defer them on the 1031 exchange and then completely avoid them on the primary residence sale? I havent been able to pinpoint much clarity around this and didnt know if a 1031 would interfere with the capital gains of selling a primary residence or vice versa.  Simply put--in a perfect world i want to know if i can perform both sales and not have them interfere with each other at all on capital gains.

2. Has anyone else had a similar situation trying to avoid paying capital gains on the profit of a sale of priamry residence not owned/lived in for the required 2 years?  My wife and I, by the time of the sale, will have owned and lived in the property for 17 months. I scoured the IRS website and seems I found an area that i can use to get us qualified for the exception since we dont qualify for the 2 year piece.  My wife went on unemployment as COVID hit her industry hard and hasnt worked for a few months.  I assume the IRS will eventually put some literature out regarding COVID and impacts on capital gains, but odd situation and i want to make sure we can use every piece of intel to make this sale go well and avoid the capital gains. 

Any help/insight would be extremely appreciated!

Thank you all!