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Advanced 1031 Exchange Advice That Will Drive New Business for CPAs and Tax Advisors

You likely have clients who have used a deferred 1031 exchange when selling appreciated investment property. As you know, by exchanging a relinquished property for like-kind replacement properties, a taxpayer can defer capital gains tax and depreciation recapture and put their entire sales proceeds to work and potentially increase the value of their real estate investments.

Since the process of successfully navigating a 1031 exchange and selecting suitable replacement properties can be complex, many CPAs may find it helpful to partner with a knowledgeable and experienced 1031 real estate professional.

That’s a sound reason to consider partnering with Paul Getty, founder of First Guardian Group. Paul is a well-known investment professional and licensed real estate broker who has helped clients complete thousands of 1031 exchange transactions for over two decades.

The Value of Advice

Mr. Getty cannot only support you when advising clients on a 1031 exchange, but his intimate knowledge of the industry also helps you introduce best exchange practices to your clients. In addition, his best-selling book, Real Estate Tax-Deferral Strategies Utilizing the Delaware Statutory Trust, continues to be used as an essential reference guide for many tax professionals. In addition, Paul can help you expand your professional network by connecting you with trusted real estate attorneys and Qualified Intermediaries who also play essential roles for clients conducting a 1031 exchange. Paul can also assist your 1031 exchange clients in finding suitable replacement properties.

Opportunities Abound

There are many 1031 exchange best practices you will want to become familiar with. Paul and his team at First Guardian Group regularly conduct educational programs for professionals like you, where you are introduced to several of the subtleties of the exchange process that many CPAs are not familiar with.

For example, you will discover:

  • The “delayed” 1031 exchange may be the most often-used 1031 exchange among investment property owners, but it is only one of four different types. 
  • A “simultaneous” exchange occurs when both buyer and seller exchange their properties with each other on the same day. 
  • A “reverse” exchange is frequently used when a seller finds a desirable replacement property before selling their relinquished property. 
  • And a “construction” exchange is a choice for an exchanger who wants to make improvements on a selected replacement property before taking possession.  Each exchange type has its own guidelines and rules that must be followed.

You may be familiar with the Delaware Statutory Trust (DST) structure that meets IRS 1031exchange like-kind property requirements. Still, you might not fully recognize the different ways taxpayers use the DST to help achieve different objectives.

For example: 

  • An investor who wants to create a diversified portfolio of real assets can select several DSTs as replacement properties. Because DST investment minimums are relatively low (often as little as $50,000), the investor can diversify their real estate by property type, geography, and size. 
  • Or, you may have an aging client who wants to ensure their heirs inherit their investment property but who wants to avoid the disputes that can often arise when heirs have different ideas about what to do with the inherited property.
  • A DST is also a frequent choice of 1031 exchangers who want a backup replacement property for their exchange in case their first choice falls through. Because a taxpayer can generally close on a DST within just a few days, DSTs have saved many exchanges when the required time to identify or complete an exchange is expiring.

These are just a few examples of the unique aspects of 1031 exchanges and DST structures that your clients who own investment property might be interested in learning about. 

Knowledge to Grow Your Business

By partnering with Paul Getty and First Guardian Group, you align yourself with a team of 1031exchange investment professionals with the knowledge and experience to help you distinguish and grow your practice. Set up a meeting with me today and discover how you can enhance your value to clients with our 1031 exchange expertise.

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Help Save 1031 Exchanges
Write to your Member of Congress and Senators urging them to oppose restricting Section 1031 like-kind exchanges. As part of the American Families Plan, the Biden Administration has proposed eliminating the application of Section 1031 for gains greater than $500,000. Like-kind exchanges have been part of the U.S. tax code since 1921 and are one of the tax code’s most powerful economic tools. It is critical that we all vigorously and visibly oppose this proposal. Make your voice heard with a pre-filled letter, which you can customize to add personal anecdotes or powerful client stories to highlight the positive impact of Section 1031 like-kind exchanges. Take action today by clicking HERE.

Paul Getty

Paul Getty is a licensed real estate broker in the state of California and Texas and has been directly involved in commercial transactions totaling over $3 billion on assets throughout the United States. His experience spans all major asset classes including retail, office, multifamily, and student, and senior housing. Paul’s transaction experience includes buy and sell side representation, sourcing and structuring of debt and equity, workouts, and asset and property management. He has worked closely with nationally prominent real estate brokerage and investment organizations including Marcus Millichap, CB Richard Ellis, JP Morgan, and Morgan Stanley among others on the firm’s numerous transactions. Paul also maintains a broad network of active buyers and sellers of commercial real estate including lenders, institutions, family office managers, and high net worth individuals. Prior to founding First Guardian Group/FGG1031, Paul was a founder and CEO of Venture Navigation, a boutique investment banking firm specializing in structuring equity investments made by institutions and high net worth individuals. He possesses over 35 years of comprehensive worldwide business management experience in environments ranging from early phase start-ups to multi-billion-dollar corporations. His track record includes participation in IPOs and successful M&A activity that has resulted in investor returns of over $700M. Paul holds an MBA in Finance from the University of Michigan, graduating with honors, and a Bachelor’s Degree in Chemistry from Wayne State University. Paul Getty holds Series 22, 62, and 63 securities licenses and is a registered financial representative with LightPath Capital Inc, member FINRA /SIPC. Paul is a noted speaker, author, and actively lectures on investments, sales, and management related topics. He is author of The 12 Magic Slides, Regulation A+: How the JOBS Act Creates Opportunities for Entrepreneurs and Investors, and Tax Deferral Strategies Utilizing the Delaware Statutory Trust (DST), available on Amazon and other retail outlets.

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