How to Sell Real Estate and Defer Taxes (Potentially Forever) With a 1031 Exchange
This month, we’re going “back to basics:” How investors can sell investment property and defer taxes (potentially forever) with a procedure called a 1031 Exchange.
Defer Taxes on Your Property Sale – Potentially Forever – With a 1031 Exchange
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.
Have a Personal Residence with Capital Gains in Excess of Your $500,000 Exemption? You Can Also Use a 1031 Exchange in the Same Sale!
Many of my readers are familiar with the IRS Section 121 Exclusion that allows married couples a $500,000 Capital Gains exemption ($250,000 for unmarried homeowners) on the sale of their personal residence.
A Review of the Latest US Census Estimates – Where is the Population Growth?
I have been following US Census data closely since 2010. As a real estate advisor, I’d like to know which areas of the country have populations that are growing faster than the national average – I think buying in these areas gives us a better chance of success. 2023 population estimates were just released: let’s take a look at the results.
Valuation of Net Leased Properties: It’s the Cash Flow!
This month, we’ll talk about what drives value in Net Leased Properties. Many of us already know that investment real estate is valued based on the income it generates. This value is further influenced by the quality of that income.
Ground Leased Property Can Offer Better Tax Efficiency
One of the big benefits we receive from our investment real estate (including partial interest properties) is tax savings from the depreciation benefit. If we own the land our building is on, we can only depreciate our improvements’ value since land is not depreciable. With a ground lease, however, we don’t own the land. Therefore, our entire purchase price can be depreciated – for potentially substantially more tax savings!
Easier 1031 Loan Replacement with Partial Interest Properties
Hate the loan application process, but need a new loan to fulfill your 1031 Exchange requirements? Partial Interest properties come with turn-key debt that can make your replacement property purchasing process a lot simpler.
The Long Term Plan for Partial Interest Properties
Since 2001, my investors have purchased over 545 partial interest properties – including DSTs. Once an investor purchases the property; what then? Does it sell sometime in the future? When? This month, my article walks us all through the plans and the process.
You Should Take Your Social Security Distributions as Soon as You Can
Common financial advise tells retirees to wait as long as possible to start taking social security benefits in order to maximize their benefits. This ignores the fact that you’ll bee giving up years of monthly income in order to do so.
Why to Buy When Interest Rates are High
Some investors are waiting for interest rates to drop before they buy property. This month, I will suggest that they reconsider that strategy. After all, lower interest rates usually lead to higher prices – and refinancing at a lower rate for a lower monthly payment is possible in the future.
An Emerging Residential Product Type – Build to Rent
A new multifamily asset class has emerged called “Build to Rent.” A Build to Rent apartment community is constructed by homebuilders as single family homes or townhouses, but then leased out as apartments and sold to investors in one package. This could offer investors an interesting “additional exit option” that we will discuss this month.
Seek Growing Metro Areas for Investment
I believe that higher population growth leads to a higher number of potential renters for our apartments, and a higher number of potential customers for our tenants.
