Hello Mark and Matt,
Great content, thank you both very much!!!
I’m currently assembling my info for the Trifecta which I’ve already paid for…
Meanwhile, I have a few beautiful questions for the podcast. Yes, lovely questions.
1) Phantom income on debt differences / 1031
I did a 1031 exchange with a low debt relinquished property and exchanged into a replacement property with much higher debt. I’ve gotten mixed opinions whether I owe a tax on that debt difference – as phantom income. So, I thought I’d ask the pros… Assuming all lenders are paid and the relinquished property’s debt is say, $1,000,000 and my percentage of the debt on the replacement property is say, $4,000,000 for a difference of $3,000,000, regardless of the gain and depreciation, is there any tax due on that isolated $3,000,000 in debt difference?
This was a sponsored multifamily with a company called GVA. This investment has failed and I’ve probably lost my whole investment. So, there won’t be any gain except for the gain from the previous sale – relinquished property.
2) If there is a sizable tax owed on this failed investment, if I transfer my LLC/TIC which owns this failed investment before it sells into a “Rockefeller” type trust, will it adequately postpone taxes owed indefinitely, as they say?
3) Trad and Roth investing in leveraged multifamily.
I’m planning to invest some Trad IRA money into a different multifamily investment with a different sponsor. I understand you have to pay tax on the leveraged percentage of both the cash flow and the capital gain. Can you please write out an example of this and how the math plays out? Does it matter to the benefits/disadvantages if you use Roth IRA money?
Big thanks,
Dan DeAngelo