This month, we closed a 1033 Exchange for a client by purchasing 6 Net Leased Properties in multiple states for a total of $33 million. This article explores the 1033 Exchange and how it differs from the 1031 that you may be more familiar with.
Many real estate investors sell their properties for sizable profits but encounter an unpleasant surprise when they file their taxes the following year. Capital Gains, Accumulated Depreciation, State and “Obamacare” taxes all add up to take a sizeable bite from their profits.
Using The Service Station Deduction To Shelter Capital Gains And Accumulated Depreciation Taxes From Investment Real Estate Sold Without A 1031 Exchange
Most of my clients are buying income producing real estate and, at the same time, buying what the IRS calls more depreciable basis that can better defer (potentially forever) taxes on their real estate income.
Sometimes meeting leverage requirements in a 1031 Exchange can be challenging. This month, I’ll talk about how we can, through a “combo exchange” mix higher and lower-leveraged properties together to meet IRS requirements and achieve our clients’ goals.
The Opportunity Zone is a powerful tool that Congress created that allows investors to defer non-1031-eligible Capital Gains through real estate investing. Congress has not extended the legislation that created this tool, so the current round of Opportunity Zone funds on the market may be the last once they sell out in 1st quarter, 2024. This could be your Last Call if this is something that can help you.
When selling real estate you only pay capital gains tax, which is 15 or 20 percent. And that’s it, right? No – it’s much more complicated (and expensive) than that. This month, we’ll talk about how a 1031 Exchange can help you defer all those taxes (potentially forever.) In the conclusion, I’ll explain how “Potentially forever” works.”
We real estate investors are naturally tax averse. Even though we dislike taxes very much – taxes are probably even worse than you think!
Many investors are holding real estate they have owned for decades. The good news is that their mortgages are paid off, and they own the properties free and clear.
I will discuss ways that you can maximize your tax benefits by using this accounting tool. After all: who doesn’t want more savings?
How you can possibly gain more depreciation income through selling your property and accomplishing a completely tax deferred 1031 Exchange.
The Secure Act became law on December 20, 2019 and will affect taxpayers who inherit IRA accounts starting in 2020.
