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ShawnA
ShawnA, CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
Category: Tax
Satisfied Customers: 2884
Experience:  CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
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1031 exchange

Resolved Question:

We are about to sell farm ground in South Dakota to my brother. Can you do a 1031 land exchange for storage units for the same or greater amt. of the sale. We live in Wyoming and the land is in South Dakota.  Or could we buy or put up apartments?  Do you think we should just invest the money since we hope to retire by 10 years Total of sale will equal 800,000.00
Submitted: 5 years ago.
Category: Tax
Expert:  ShawnA replied 5 years ago.

Hello. My specialty is focusing on YOUR Financial needs. Financial Planner/Business Owner for 20 years. CPA,PFS,QFP,GMMA.

 

You can do a 1035 exchange . The answer to your question 1035 vs invest depends on the following:

 

1. when you retire in 10 years will you need income from this?

2. How much?

3. Will you need the 800k?

4. Will that 800K be needed for estate taxes?

5. Do you have nursing home insurance?

6. if you do buy or invest in whose name will it be?

 

With answers I can better help explain.

 

 

Customer: replied 5 years ago.
When we retire in 10 yrs. we may need some of this money. Hopefully just the income that it has produced or interest it is bringing in. We have a Subway sandwich shop we are trying to sell and our home is worth over 500 thousand. My husband has almost 300 thousand in his retirement. We have no payments or debt. We have over 300 thousand in life insurance for our grown children and grandkids. We have thought about purchasing nursing home ins. but haven't yet. It was quite pricey at around 2500 a year. If we invest I would like my husband to benefit in the income it produces but would like the majority of it to go to my children if I were to pass away. How could I set this up without the kids having to pay so much in taxes each year. I had a bad experience with my dad remarrying and his wife getting more than her share of my dads estate.
Expert:  ShawnA replied 5 years ago.

There are a/b trusts, family partnerships, life insurance, etc.

 

As a CPA who also has the PFS designation for financial planning I suggest you speak to a financial planner, tax accountant, and estate attorney. This team will MORE than pay for itself in terms of tax savings, financial security, and peace of mind.

 

You need 'financial checkup" and this is not the place to do it. My job here is to get you started down the right road.

 

Hopefully, in your case, with these assets, you are on the way.

 

 

If this does not answer your question please let me know. Also let me know if you have additional questions.

 

This is my full time job and I only get paid if you accept my answer. We work on the trust system at JA.

 

If you understand my answer and have no more questions, please accept and please eave positive feedback (if so inclined). Thank you.

Expert:  ShawnA replied 5 years ago.

Do you have any other questions? Please let me know via a yes or no. Thank you.

ShawnA and other Tax Specialists are ready to help you