In this episode of the Major League Real Estate Podcast, Nathan Sosa and Matt Hamilton dive into the complexities of 1031 exchanges and why they can be both powerful and problematic for real estate syndicators.

Nathan and Matt walk through:

- What a 1031 exchange is and how it works as a tax deferral strategy

- The 45-day identification rule, 180-day closing window, and the role of qualified intermediaries (QIs)

- Why 1031s are straightforward for individual investors but difficult to execute in syndications

- How raising capital and bridging equity gaps can create taxable gain events

- The impact of rolled-over basis on depreciation and cost segregation benefits

- Why Tenancy-in-Common (TIC) structures are often used to bring 1031 investors into syndications and the risks if they’re not structured correctly

- How failed 1031s can still create planning opportunities depending on timing

Real-world scenarios where syndicators must balance investor expectations, compliance requirements, and long-term tax strategy

They also highlight the legal, tax, and investor relations challenges syndicators face when attempting 1031s, and why working with an experienced CPA or tax advisor is essential to avoid costly mistakes and missed opportunities.

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