Nathan Sosa, a tax advisor and expert for real estate investors, shares groundbreaking tax strategies that can save you a fortune. Discover how land banking can be a powerful long-term play, along with advanced 1031 options like reverse exchanges. Sosa highlights niche deductions including solar credits and casualty losses, while also warning about pitfalls like the 3.8% Net Investment Income Tax. The discussion wraps up with practical year-end action items to optimize your tax strategy for 2025 and avoid expensive mistakes.
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Reverse 1031 Lets You Buy First, Sell Later
Reverse 1031 exchanges let you acquire replacement property first by parking it with an accommodation titleholder.
You then must sell your relinquished property within 180 days to complete the deferred exchange.
volunteer_activism ADVICE
Only Do Reverse 1031s With Expert Support
Expect higher legal costs and complexity with reverse 1031s; use experienced counsel and a qualified intermediary.
If you fail to sell within the rules, you won't defer gain and you'll incur the costs without tax benefit.
insights INSIGHT
Improvement 1031s Require New Acquisitions
Improvement 1031 exchanges allow funds to be used to improve replacement property held in an accommodation title.
You cannot use land you already own to be transferred into the EAT for the improvement exchange.
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In this episode of the Tax Smart REI Podcast, Thomas Castelli and Nathan Sosa break down under-the-radar tax strategies real estate investors and high earners can use to cut their tax bills—plus the mistakes that quietly cost people thousands.
You’ll learn:
- How land banking works, who it fits best, and why it can be a powerful long-term tax play
- The advanced “1031” strategies including reverse and improvement exchanges to defer taxes while upgrading properties
- Niche but huge deductions like solar (only if you own the panels) and casualty losses
- Two common pitfalls: accidentally triggering the 3.8% NIIT and missing the §469 grouping election that can trap losses.
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