Can You Sell Rental Property as a 1031 Exchange?

by Toby Mathis

August 10, 2021

Free Tax Tips & Strategies

In this episode of Tax Tuesday, Toby Mathis, Esq. along with Jeff Webb, CPA, answer your tax questions LIVE bringing tax knowledge to the masses.

8:37 – Can I offer my condo as a rent-to-own rental for six months and sell it as a 1031 exchange?

18:35 – I own real estate, a business, and have W2. I was told that I can’t take all deductions allowed because I’m in the process of acquiring more real estate and won’t be able to qualify for financing. Is this true?

28:26 – Should I invest into LP multifamily syndications with the same LLC as I have active personal rentals?

33:51 – I have been told that as a land wholesaler I would NOT be considered a dealer by the IRS like I would be if I wholesale houses. Will IRS still consider me a dealer if I simply wholesale?

40:39 – I am a cofounder of a startup (C-corp). Can I establish a self-directed Roth IRA and put my company share in it?

44:49 – How do I handle a family rental for income and expenses that was just inherited? The property name will be in the parents’ family trust with part income distributed to the children as their share of the property. The parents will be claiming all expenses and sharing the income with the children. Do the parents deduct the income given to the children as part of their expenses?

49:51 – I bought a property in TX in my name, now putting it into an LLC, the LLC will be put inside a WY LLC. I still have mortgages on the above property and keep making my payments. Do banks still use my above mortgage liability to calculate my debt-to-income ratio?

51:18 – When I file my personal taxes, can I still write off my taxes on my properties held under my WY LLC?

55:30 – My husband and I divorced in 2009 for asset protection reasons but have lived together this whole time in the same homes. I purchased a home in Florida 1/2019 that we moved into and is our primary residence. If we get remarried before we sell can we use the joint exclusion? $500k?

57:59 – Regarding the Tax Reform Act of 1986, if I make under $100,000, I can write off up to $25,000 of real estate losses, provided I have active participation. If I make over $150,000, I cannot write any losses off unless I am a real estate professional with material participation. Then I can write off the real estate losses against my other income?

1:01:54 – I’m turning 70 and I have a traditional IRA account which lost money (at some point it was worth 90K and now it’s worth around 30K). Now that I have to start withdrawing, am I still going to pay taxes, given the fact I lost money?

Author Bio

Toby Mathis, Esq. ~ Founding Partner, Attorney, Author & Business Tax Expert.

Toby Mathis is a founding partner of Anderson Law Group and current manager of Anderson’s Las Vegas office.

He has helped Anderson grow its practice from one of business and estate planning to a thriving tax practice and national registered agent service with more than 18,000 clients.

In his work as an attorney, he has focused exclusively in areas of small business, taxation, and trusts. In addition, Toby was the past director and host of the longest-running local business radio program on KNUU in Las Vegas “The BOSS Business Brief”.

He sits on the board of directors for several companies and was recently appointed to the local board of Entrepreneurs’ Organization, a worldwide association of owners of successful businesses. He has authored more than 100 articles on small business topics and has written several books on good business practices, including first, second and third editions of Tax-Wise Business Ownership and 12 Steps to Running a Successful Business.