IREXA Financial Services/Wealth Strategies
Chief Executive Officer
Robert (Bob) Boggess is the CEO and Chief Strategist for IREXA Financial Services/Wealth Strategies. Bob's focus is Strategic Tax Mitigation (TM). He has been helping investors build, manage and preserve financial wealth for 30 years. Bob's focus is developing innovative, tax-efficient investment strategies. He specializes in developing tax-efficient investment strategies . His strategies focus on: wealth building, wealth maintenance, wealth protection, and estate planning, while minimizing taxable impacts.
Bob works with high net worth individuals, their CPAs, and tax advisors to construct investment strategies for maximum tax savings. He offers tax-efficient, non-traditional, investment solutions to build and protect clients' financial health. Bob believes the best wealth management strategies keep your money working for you by utilizing investment vehicles that defer and mitigate taxes, that's tax-efficiency.
Robert L. Boggess is a Registered Representative with SANDLAPPER Securities, LLC. He is licensed in AL, AZ, CA, CO, MT, OR, VA, WA.
BaED, Architecture, University of Washington
Assets Under Management:
IREXA Financial Services / Wealth Strategies collaborates with CPAs, attorneys, and other tax professionals to assist clients with tax mitigation strategies. IREXA, Sandlapper Securities, and Sandlapper Wealth Management are not tax professionals or attorneys. IREXA only provides client tax mitigation strategies through and with the approval of our client’s professional counsel.
Securities are offered through SANDLAPPER Securities, LLC (SLS), member FINRA/SIPC. Advisory services offered through Sandlapper Wealth Management LLC (SLS-WM) an SEC registered investment advisor, 800 East North St, 2nd Floor, Greenville, SC 29601, 864.679.4701. IREXA is unaffiliated with SANDLAPPER Securities, LLC and Sandlapper Wealth Management LLC.
You should probably see a real estate attorney in your area. As you stated, your father has a mortgage on his home. He further quit any claims he has on the property to you. Your father qualified for a loan on his home using the home as collateral. He has since given the collateral away. It could be a simple issue of your quit claiming your interest back to him. Or, it could be much more complicated.
There are two issues here, taxation and transfer. Assuming the total valuation of the properties being transferred is not in excess of estate tax limitations, there will be a step up in basis using either strategy without estate tax consequences. Whether to use the LLC or Transfer on Death deed is dependent on individual circumstances. Since a properly executed TOD Deed can supersede provisions in a will, it is imperative to fully understand the consequences of using a TOD Deed. The following link sheds more information on this matter. http://www.americanbar.org/content/newsletter/publications/gp_solo_magazine_home/gp_solo_magazine_index/realestate_transferondeath.html
If you live in the home two out of the last five years, you can qualify for the residential exemption. So living in the home after your tenant leaves will work as long as the tenant was not in the home more than three years. During the time the house was rented out, you should have used Schedule E rather than Schedule A on your tax return. Any depreciation taken during the rental period will be recaptured (currently) at the rate of 25%.
In order for an exchange to work, there must be an exchange of one or more properties (sale) for one or more properties (purchase) as part of an integrated transaction. Since you own all three properties, there is no exchange. You are not buying from someone else, as you own the properties. You will have to pay taxes on the sale of the zero debt property. The remaining funds can be used to pay down or pay off your mortgages. Without knowing more, I'm not sure I'd recommend this approach. There are several strategies that can help you handle this issue in a more tax efficient manner. It is outside of the scope of this blog post.
This is a discussion you should be having with your CPA.