Tax Smart Real Estate Investors Podcast
260. Tax Structuring Considerations for Transferring Real Estate Wealth to the Next Generation
Feb 13, 2024
Tim Wallen, a real estate CPA and CEO, along with Rick Reuter, a CPA and Controller of MLG Capital, discuss tax structuring considerations for transferring real estate wealth to the next generation. They talk about strategies to minimize taxes in the process, the challenges faced by investors, and the benefits of funds like MLG's Legacy Fund in reducing tax bills.
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Quick takeaways
- The MLG Legacy Fund offers a tax-efficient strategy for real estate investors through a 721 exchange, providing year-over-year tax savings and estate planning benefits.
- The Legacy Fund differentiates itself from other tax-deferred strategies by offering diversification, a private structure, and flexibility in asset contribution.
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The benefits of investing in the MLG Legacy Fund
The MLG Legacy Fund offers a tax-efficient strategy for real estate investors. By exchanging their property for a partnership interest in the fund through a 721 exchange, investors can defer their taxes. The fund provides year-over-year tax savings by offering accelerated deductions and offsets for ordinary income tax from passive losses. Additionally, the fund offers estate planning benefits, allowing for permanent built-in gain tax deferral and step-up in basis at death. The minimum investment for the Legacy Fund is $3 million.
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