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 Great Point Capital, 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 planning professionals to assist clients with tax mitigation strategies. Neither IREXA® and Great Point Capital, LLC are not tax professionals or attorneys. IREXA® only provides client tax mitigation strategies through, and with the approval of, the client’s professional counsel.
Securities offered through Great Point Capital, LLC, Member FINRA/SIPC, 200 W Jackson Blvd #1000, Chicago, IL 60606, telephone (312) 356-4872. IREXA® is not affiliated with Great Point Capital, 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
Congratulations on making it through the initial educational process. You are just starting your careers, and there is a likelihood that your income will continue increasing over time. I work with clients and their tax professionals to mitigate taxes due to the impacts of ordinary income; portfolio and passive income; the purchase and sale of assets including real estate; retirement income, and estate planning issues. By using this approach, you can look at all of the sources of income and determine a solution or series of solutions that should result in optimum tax liability.
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.