Accelerated Real Estate Investor 214: Avoiding Capital Gains Tax — An Alternative to the 1031 Exchange with Kim Dyer
What should you do if the tax rules change and you’re forced to pay capital gains on a property you sell?
Many of you have probably heard that there’s a possibility that the 1031 exchange will be eliminated by the Biden administration. This is a BIG deal for real estate investors who use this strategy to avoid paying capital gains by rolling them into the next deal.
In the event that the rules do indeed change, you need to have a plan in place and be ready.
That’s why today’s interview with Kim Dyer is so important. Kim is a Founding Partner at Keystone Capital Management Group and an Investment Advisor Representative (IAR).
In our conversation, Kim breaks down section 453 of the tax code, which allows someone to sell a property to a sales trust. The trust (managed by you) would sell the asset to the buyer, and then the funds from that sale would be placed in the trust to be paid out to you over a predetermined period of time.
Using this strategy, not only can you defer capital gains for 20+ years, but you can reinvest the proceeds, get a return on your investment, and have your profit pay the taxes for you at a later date.
If you want to find out more about how you can leverage the government’s money, take advantage of inflation, and defer capital gains, this is a must-listen episode!
Key Takeaways with Kim Dyer
- What the 1031 exchange is used for and how it helps real estate investors pay less in capital gains.
- Understanding section 453 of the tax code—a great alternative to the 1031 exchange that will allow you to defer capital gains tax for 20+ years.
- How does a deferred sales trust work?
- How to reinvest the government’s money and let the profits you earn pay the tax bill on your terms.
- Why Kim is so dedicated to helping real estate investors maximize their returns.
- The value of having a good tax accountant or attorney to ensure you’re taking advantage of every benefit that already exists in the tax code.
- How to leverage a monetized installment sale, to defer your taxes (for up to 30 years) in order to buy more real estate.
- The importance of getting a second opinion when interviewing a financial advisor or tax attorney.
Want the Full Show Notes?
To get access to the full show notes, including audio, transcripts, and links to all the resources mentioned, visit https://acceleratedinvestorpodcast.com/214
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