Asset focus
Challenges
- Investors are often surprised to learn that reducing debt on a replacement purchase can itself create taxable boot
- Closing cost allocations and prorations are sometimes mishandled in a way that inadvertently generates cash boot
- Partial deferral from unintentional boot can undercut the financial rationale for pursuing the exchange in the first place
What we deliver
- A boot risk review comparing your relinquished property sale price and debt against prospective replacement property scenarios
- Plain language worked examples of cash boot and mortgage boot
- Coordination notes for your Qualified Intermediary and tax preparer on how boot will be reported
Related services
Find replacement properties for your 1031 exchange
Understand how federal capital gains tax applies when you sell a rental
Understand the stepped up basis rule for inherited real estate
Understand the structures investors use to earn passive income from real estate
FAQ
How quickly can this service move in Austin, TX?
We begin the workflow immediately and keep stakeholders informed across Austin, TX.
Does this service cover markets outside Austin, TX?
Yes. We coordinate local partners so you can execute in any state while staying anchored in Austin, TX.
Who leads lender and Qualified Intermediary conversations in Austin, TX?
We coordinate with your lenders and Qualified Intermediaries, while reminding everyone that we are not a Qualified Intermediary. Every update references the exchange timeline in Austin, TX.
What documentation is delivered?
You receive organized summaries, letters, and trackers that make it easy to brief partners in Austin, TX.