FAQ

How does investing fit with tax planning?

By its very definition, tax-efficient investing refers to minimizing the taxable impact of your investment decisions. Remember, it’s not what you make; it’s what you keep.  In our opinion, investing without being mindful of the tax consequences is imprudent.

Are tax-savings investments legal?

When the government policy is to encourage behavior or commerce, incentives are created. There is no better incentive than to let people keep their hard earned cash by reducing their tax bill.

How does insurance fit into my tax savings and retirement plans?

Proper tax planning should do two things: reduce your taxes while you are alive, as well as after you die. Permanent life insurance gives you the potential to cover these two bases at once. You can transfer your assets income tax and estate tax free to beneficiaries and also build up tax-deferred growth of cash inside the policy.

What is a 1031 Exchange?

For taxpayers who own business or investment property, Section 1031 of the U.S. Internal Revenue Code allows the deferment of federal income taxes on the exchange of like-kind properties. These exchanges are also termed “Tax Deferred Exchanges,” “Like-Kind Exchanges,” and “Starker Exchanges.”

What are the advantages of a 1031 Exchange?

A 1031 Exchange allows the deferral of federal capital gains tax and most similar state taxes on the disposition of investment or business property, providing a taxpayer more money to invest into qualified replacement property.

What are the characteristics of a 1031 Exchange?

A tax-deferred exchange is a transaction involving the sale and purchase of investment property or property held for productive use in a trade or business which meets requirements of Section 1031 of the Internal Revenue Code and qualifies for non-recognition of gain or loss. Technically, the exchange is tax-deferred, not tax-free, since the gain deferred in the transaction will be recognized on the ultimate sale of the replacement property received in the Exchange. During a tax-deferred exchange, the investor may not have constructive receipt of their exchange funds. Therefore, a Qualified Intermediary (QI) as an independent third party is needed to facilitate a 1031 Exchange transaction and hold the funds on behalf of the investor.

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All investments involve risk. Outcomes are not guaranteed.

*IREXA Financial Services | Wealth Strategies, SANDLAPPER Securities, LLC and Sandlapper Wealth Management LLC do not provide legal or tax advice.

**Investing has risks; performance is not guaranteed. Securities offered through SANDLAPPER Securities, LLC (member FINRA/SIPC) and advisory services offered through Sandlapper Wealth Management, LLC an SEC Registered Investment Advisory Firm. Robert Boggess is an independent representative of SANDLAPPER Securities and independent advisory representative of Sandlapper Wealth Management. IREXA Financial Services/Wealth Strategies is not an affiliated company with the Sandlapper Companies or CPAAcademy.org. No offer to buy or sell securities is being made. Such offers may only be to qualified accredited investors via private placement memorandum. Neither Sandlapper nor IREXA are tax advisors. Prospective strategies and products used in any tax advantaged investment planning should be reviewed independently with your tax and legal advisors. Investments are not guaranteed or FDIC insured and risks may include but are not limited to complete loss of principal investment. Risks detailed in a private placement memorandum should be carefully reviewed, understood and considered before investment. Changes in the tax code and other regulatory revisions could have a negative impact upon strategies developed and recommendations made.

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