Does cousin B have the cash laying around to pay all the taxes on his sale after using all his sale’s cash for this deal (to avoid taxes he must use all cash.) if the IRS denies his exchange and demands the taxes be paid?

Hello – I'm looking for confirmation of understanding/ advice relating to transferring property into LLC and treatment from a tax perspectiveMy parents completed a 1031 exchange over 2 years in their own names – they file a joint tax return.

I used HELOCs, 1031 Exchanges, and partnerships to expand the portfolio.

If you decided to go a more diverse route by selling and investing elsewhere, You should look at doing a 1031 exchange.

Assuming you have two spouses who each make $300,000, your hourly rate is about $150 / hour assuming you work about 2000 hours a year.I personally think it is better to continue investing in LTR which will likely be less time consuming / stressful to STR's.You don't want to exchange something where you make $150 / hour(at work) to something else where you may only make $10 / hour.Best of luck

In a 1031 exchange I had to hammer both with  threats due to the agreement to cooperate and the constant surprises of new partners and unfilled liens with an approaching lapse of the 180 day limit. 

In exchange for paying the high end of comps for the house at $500k without going on the market, the buyer was ok paying a commission because they knew they’d have to anyway to fetch that price on market.

1031 exchanges are a powerful tool for real estate investors.

You get to charge the one tenant above-market rent (in exchange for them being allowed to sublet), the lender gets the one single lease that they know how to understand, everyone wins.

You want to keep paying cheap rent but get an A-class rental in exchange.