Avoid boot in your 1031 exchange before it triggers a surprise tax bill. Boot happens when you take cash out of the deal or your debt goes down. Either one can turn a tax-deferred 1031 exchange into a taxable event your investors never saw coming.
In this Wealth Unfiltered year-end tax planning finale, Harisimran Khalsa, CPA, President of Professional Services at SponsorCloud, explains how real estate sponsors can avoid 1031 exchange boot, when a reverse 1031 exchange makes more sense, and which tax strategies sophisticated sponsors use before year-end.
In This Episode, We Cover
- 2:04 – Hari’s career path
- 4:25 – Winning sponsor habits
- 9:06 – Distribution tax myths
- 12:12 – Tax season prep
- 16:02 – Entity structure mistakes
- 19:23 – Cost segregation explained
- 21:57 – Depreciation recapture
- 25:42 – Funds vs. SPVs
- 30:17 – Opportunity Zones 2.0
- 33:11 – Reverse 1031 exchanges
- 36:09 – Real estate professional status
- 43:02 – Why SponsorCloud
About Harisimran Khalsa
Harisimran brings 20+ years of finance and tax experience. At Ernst & Young, she led initiatives that generated over $50M in client tax savings. She has also served as VP Finance at Augmedix, Head of Finance at Housecall Pro, and CFO of KIIT Company Inc.
Find Harisimran Here
- Book a call with Harisimran’s team: sponsorcloud.io/unfiltered
Listen to more Wealth Unfiltered for candid conversations about real estate investing, capital raising, wealth strategy, and the decisions that shape long-term financial success.
Disclaimer: This episode is for educational and informational purposes only and should not be considered individualized investment, legal, or tax advice. Consult qualified professionals regarding your specific circumstances.
