Tax Planning Strategies for Real Estate and Family Offices with Ricky Novak and Jarrod Arnold

Ricky Novak is the Co-founder of the Strategic Group. He has spent his career working at the intersection of real estate, tax, and private equity. He works directly with high-net-worth investors & family offices and is the trusted advisor to these clients. His expertise focuses on real estate private equity, tax-deferred 1031 exchanges, Delaware statutory trust (DSTS), tax-deferred opportunity zone funds, and numerous federal and state-sponsored tax mitigation strategies.Joining us today as Co-host is Jarrod Arnold, CPA, Jarrod is the COO at Excelsior Capital, where he oversees financial matters (including budgeting, forecasting, and tax) as well as Marketing, Human Resources, and Investor Relations. Before joining the company, Jarrod was a Tax Manager at KraftCPAs in Nashville, TN focusing on medium-sized companies in a wide range of industries. Jarrod began his career at BDO in a similar capacity and is a Certified Public Accountant in the state of Tennessee. Key Highlights:[00:01 -06:47] What is 1031 ExchangeIt’s a strategy that has minimal riskIf you own a property,  you can sell that asset and execute an exchange into one or more replacement assets. If you do everything correctly, you are deferring your tax liability and allocating it to a new investment.[08:50 - 12:21] How to Find a Qualified Intermediary You Can TrustFind someone who has your best interest and will show you the right way to go about thingsBe wary of QIs who cut corners. This might put you in a difficult situation where you have to deal with IRSQuestions to ask to qualify for a QIFigure out how sophisticated the QI is. You want someone knowledgeable and could help you make decisionsMake sure they have the right insuranceMake sure you have a dedicated advisor [12:22 - 26:34] 1031 Exchange: Know The RulesWho should be at the table when pursuing 1031CPATax/Real Estate AttorneyReal Estate ProfessionalsBe involved in the conversation and make sure you understand the real-life implicationsThe reason for  the uptick in 1031 investmentsHow you could take advantage of deferring taxes  as a property ownerEntering 1031? Make sure you have the following:A clear understanding of the math of the transactionAvoid the misconception that you only have to roll the equity to the next propertyBe proactive in identifying issuesHere’s what to ask your sponsor when vettingDo your investment match upStructure and timingOpportunities on legislation are materially different than 1031[30:37 - 31:24] Closing SegmentConnect with Ricky and Jarrod on LinkedIn and visit Ricky’s website at www.strategicgroup.comKey Quote:“When you look at it, the good news is while there are plenty of strategies out there that have, higher degrees of risk, 1031 happens to be a strategy that really has minimal risk. It's been around in the code for quite some time. The code and the treasure registry are very detailed on this matter, and there's a good bit of case law out there on 1031-related issues.” - Ricky NovakLIKE, 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.