Expert Insight on 1033 Exchanges with Brad Borden & Camille Renshaw

This episode of the Capital Club podcast dives deep into 1031 and 1033 exchanges. Our guests, Camille Renshaw, CEO and co-founder of B+E, and Brad Borden, a professor of law at Brooklyn Law School, provide expert insight into how these sections work and how they may apply in a business environment. They discuss differences between 1031 and 1033 exchanges such as types of property that can be acquired, time periods, use of proceeds, ownership restrictions, and much more. Tune in to learn more about 1031/1033 exchanges and get helpful advice from our knowledgeable guests!Key Highlights:[00:01 - 06:25] Opening SegmentUnderstanding the difference between 1031 & 1033 exchangesTypes of properties that can be acquired are differentCamille’s experience with 1033 in both personal and business sense[06:26 - 12:57] 1031 & 1033 ExchangesThere are secondary markets across the country with industrial property in the middle of downtown1033 exchanges allow property owners to reinvest proceeds from the sale within 2 years1031 exchanges require a 45-day identification period and 180 day exchange periodWhy qualified intermediaries are involved in 1031 exchanges, but not in 1033 exchanges[12:58 - 19:30] Navigating the Complexities of 1031 and 1033 Exchanges Under 1031, the replacement property must be like the relinquished propertyUnder 1033, there is a similar or related in-use standard that is broader than 1031How people are fatigued after going through the condemnation process[19:31 - 25:30] Leveraging Exchange Proceeds for InvestmentOften there are multiple family members involved in 1031/1033 exchangesTech platform allows people to scour the whole market for net lease assetsPeople want something less hands-on and less cumbersome than their previous investment profile[25:31 - 32:07] Exploring 1031 and 1033 ExchangesWhat's allowable, not allowable, and what ownership structuresPrepaid construction services and materials are not considered real propertyHow ownership structures can be divided tax-free with partnerships[32:08 - 39:39] Closing SegmentDistributions of property from S corporations or C corporations will trigger gain recognitionGet expert advice on complex tax issuesIt’s important to have communication between all parties involved in the transactionWant to connect with Brad? Head to his website to learn more about complex property transactions and business restructurings!Want to connect with Camille? Follow her on LinkedIn.Key Quotes:“I definitely encourage you if you are basing a 1033 or 1031 frankly, you won't find any better people than Brad or Camille in the business or industry.” - Brian AdamsConnect with me on LinkedIn!LIKE, SUBSCRIBE, AND LEAVE US A REVIEW on Apple Podcasts, Spotify, Google Podcasts, or whatever platform you listen on. Thank you for tuning in and Stay Tuned for the Next Episode COMING SOON! Hosted on Acast. See acast.com/privacy for more information.