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Case Study – Cash Out My Ex-Spouse

November 21, 2017 By catd-gomark

CA TD Investments Case Studies

Cash Out My Ex-Spouse

Debbie and Allen aren’t getting any more. “Irreconcilable Differences” have ended the marriage. Allen needs monthly income to finance his latest interest and Debbie wants to remain invested in rental property. They have owned their current rental property for twelve years.

Problem:

The property was purchased for $100,000 and depreciated for tax purposes. It is now worth just over $800,000 after selling expenses. If Debbie and Allen sell they will owe nearly $192,000 in taxes and after they pay the remaining mortgage they will keep only $298,000 each.

Solution:

CATD purchased the residence from Debbie and Allen from their 1031 accommodator for $385,000 cash and a $385,000 note, assuming the existing $30,000 note. Debbie was able to complete her exchange, investing her full equity of $385,000 in the new property; an increase of $87,000 over the amount she would have gotten upon a sale.

Allen will receive $2,245.00 per month, on the $385,000 principal invested, for the next ten years. Thereafter he can negotiate to renew the note or accept the principal and pay the capital gains tax a full decade after the sale.

Filed Under: Case Studies

California Trust Deed Investments
CATD Investments, Inc. a financial services company serving communities through its offices in both Agoura Hills and Encino, California, funds private loans to real property owners secured by trust deeds. The firm’s primary conduct include taxation for closely held, small & medium sized companies and high net worth individuals in sectors of real estate and construction. Mark Nadel, CPA, founder of CATD Investments has expertise in areas include tax planning and compliance, estates, trusts and business consulting. Our mission is to help clients generate cash through the best investment solution include Instalment Sale and defer capital gains tax.
Contact CATD

CATD Investments, Inc.
30497 Canwood Street, Suite 200
Agoura Hills, California 91301

Tel: 818-865-1570

Fax: 818-865-1571
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