1031 Exchange PLUS

Overview

Defer Capital Gains Using Section 1031 of the Internal Revenue Code PLUS Using Sale Proceeds to Purchase a Historic Building that Qualifies for a Charitable Deduction.

Solution  Detail

• Minimum Transaction Size $8M
• Investment Real Estate (Rental, Commercial, or Industrial Properties)
• Deferred Capital Gain at the close of the sale
• 1-time Historic Easement Charitable Deduction is received upon purchase of a historic building that qualifies for the charitable deduction.  This deduction is received 1 year +1 day AFTER the property is purchased and can be applied against ordinary income or future capital gains for the next 15 years or until the deduction is exhausted.
• Strategy Presentation Meeting – 1 hour via Zoom
• Due Diligence Materials sent by the Program Sponsor for client review
• Analysis of Benefit – Illustration Provided, 48-hour turnaround
• Program Engagement Process:
  • In coordination with the Program Sponsor, identify up to 3 replacement properties within the 45-day window after the close of escrow.
  • Transfer monies from the accommodation account to purchase the replacement property.
  • Program Sponsor identifies the highest and best use of the historic property to determine the appropriate tax benefit.
  • After 1 year + 1 day the historic charitable deduction is available to claim.

Target Use Case(s)

• Investment Real Estate (Rental, Commerical, or Industrial) with a minimum transaction size of $8M

Referral Compensation

• TaxWealth’s $5,000 Analysis Fee is not subject to referral compensation splits.
• Based on TaxWealth’s Flat Fee Compensation Schedule for Tax Strategy Engagements. For Alliance Partner:  50/50 Split of the TaxWealth Planning Fee
• 5% Strategy Partner Referral Compensation of the total contribution is paid to TaxWealth.  Funds are distributed 10 business days after TaxWealth receives referral compensation. Alliance Partner receives 50/50 Split of Referral Compensation
• NOTE: If TaxWealth Receives a simple introduction and completes all the work of analysis, education, document collection, and strategy implementation, the Referral Compensation Split will be 20% to the Alliance Partner.
• Any Advisor or Client Referral from the TaxWealth Alliance agrees to these terms unless otherwise stated.