Guys some really constructive advice. Research the question and have solid answers ready before you attempt to read and answer them on camera. This on question on 1031 was a train wreck. You were literally piecing together the answer on air. Please consult BiggerPockets attorneys, accounts and experts BEFORE attempting to explain it. :-) Other than that I LUV the show
do cash out refi before you do the 1031 ? the debt service. has to be same or greater than the current mortage on the old property long as it has no pre payment ?
An Accountant told me, A cash-out refinance immediately after the 1031 exchange, looks like the avoidance of having to recognize "boot" but pulling the cash out anyway. Is this accurate?
this is supported by an American Bar Association Section of Taxation’s Comments Concerning Open Issues in Section 1031 Like-Kind Exchanges. It reads in part in Answer 2b- Post-Exchange Refinances: Post-exchange refinancing should be of less concern from a tax perspective than pre-exchange refinancing. Here the integration of the refinancing with the acquisition of replacement property should not matter. Even where a new loan is obtained at the time or immediately following a taxpayer’s acquisition of replacement property in an exchange, receipt of cash by the taxpayer should not be treated as boot.
Guys some really constructive advice. Research the question and have solid answers ready before you attempt to read and answer them on camera. This on question on 1031 was a train wreck. You were literally piecing together the answer on air. Please consult BiggerPockets attorneys, accounts and experts BEFORE attempting to explain it. :-) Other than that I LUV the show
do cash out refi before you do the 1031 ? the debt service. has to be same or greater than the current mortage on the old property long as it has no pre payment ?
Love the short discussions! Excellent talk but as always, consult your friendly neighborhood CPA! Each situation is unique!
Can I buy two properties at the same time using my 1031?
Yes
An Accountant told me, A cash-out refinance immediately after the 1031 exchange, looks like the avoidance of having to recognize "boot" but pulling the cash out anyway. Is this accurate?
this is supported by an American Bar Association Section of Taxation’s Comments Concerning Open Issues in Section 1031 Like-Kind Exchanges. It reads in part in Answer 2b- Post-Exchange Refinances:
Post-exchange refinancing should be of less concern from a tax perspective than pre-exchange refinancing. Here the integration of the refinancing with the acquisition of replacement property should not matter. Even where a new loan is obtained at the time or immediately following a taxpayer’s acquisition of replacement property in an exchange, receipt of cash by the taxpayer should not be treated as boot.