Deferring Taxes Using 1031 Exchanges & Delaware Statutory Trusts with Jamie & Patrick Furlong
by Grant Bledsoe, Three Oaks Wealth
1031 Exchanges and Delaware statutory trusts are both nifty instruments for financial planning. In today’s episode, we explore more about the deferring taxes using 1031 Exchanges and Delaware statutory trusts with Jamie & Patrick Furlong. Jamie & Patrick specialize in 1031 Exchanges with DST’s and other securitized real estate investments. They exclusively serve clients seeking to acquire replacement properties in a 1031 exchange, navigate the complexities and time restrictions in the ever-changing 1031 environment through their company, Legacy Investment Real Estate.
Don't Forget Charitable Tax Credits
Are you donating money to charitable organizations, but looking for a way to make a larger impact? There are many tax strategies to make your charitable giving go further, but one that is often overlooked is taking advantage of charitable tax credits.
When to Consider a 1031 Exchange
A 1031 exchange allows you to exchange a piece of real estate for another piece of real estate without paying capital gains taxes. Consider a 1031 exchange ONLY when continuing to hold property in your portfolio makes the most sense BEFORE considering taxes.
The people who actively switch among rental properties will use 1031 exchanges to keep a low-cost basis and avoid paying capital gains taxes. When they die, their property is passed to their heirs and it gets a step-up in basis which means the heirs can sell without paying any capital gains taxes.
Take Advantage of Lower Capital Gains Tax Rates
We all know we get taxed many different ways, and it’s important to understand them all at least to some degree. I want to focus on the capital gains tax and how we can use these rates to our advantage.
Capital gains happen when you sell something for a gain. Each year, the IRS requires you to report all your capital gains and losses for the year and there are three important things you should know about how these taxes work.
For more advice on minimizing taxes, be sure to check out:
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