| |
| |
|
Real Estate Information |
|
|
Are You Tired of Tenants, Toilets, and Trash?
Wouldn't you rather go to Tahiti? Are you a landlord with rental property whose value has significantly appreciated? Are you ready to cash in those profits and take that trip to Tahiti? Before selling your property, check with your accountant whowill tell you that you will be paying $60,000 in CapitalGains Tax to Uncle Sam. Your accountant will also tell youthat adding another $20,000 to your income by that sale iscalled recaptured depreciation. This will bump you into thenext tax bracket and doom you next April 15th into sendingthe IRS a check for maybe another $7,000. Are you still ready to sell that property?It looks like that trip to Tahiti is going to be sometime inthe far future? But wait! You decide to check with your realtor and thenfind out about a 1031 exchange to defer your Capital Gains. Your realtor tells you if you buy another like-kind rentalproperty of equal or greater value, you won't get hit withthe gains tax on the sale. That is all fine and good, butit does not really get you out of the headaches associatedwith collecting rent, keeping your unit occupied, findingclean/classy tenants that won't trash the place, nor does itkeep you from getting that 2am call to fix an overflowingtoilet. To top this off, now you have to pay more inproperty taxes and must charge higher rent. Hmm?maybe this idea is not the ticket to that South Pacificparadise either. This is the dilemma I heard from my financial clients againand again. They were frustrated and felt trapped in theircurrent situation. So what is a frustrated income propertyowner to do? After a lot of research and roadblocks, I foundthe perfect solution that has changed the lives of myclients and took away stress to bring enjoyment of life. For anyone who is tired of being a landlord and who owns arental/commercial property that has gone up a lot in value,take heart.A 1031 exchange into a Tenant In Common Property may be youranswer. There are very specific rules to follow set by the IRS, andthe entire detailed process is the subject for a futurearticle, but here's the gist: 1-Sell your current incomeproperty; 2-Before the close of escrow, you declare via a QualifiedIntermediary (also called an Accommodator, who is aqualified third party) that you intend to do a 1031 exchangeinto a Tenant in Common Property; 3-Work with a reputablecompany to identify a property that you would like topurchase an interest in; 4-At the close of escrow, yourproceeds are transferred by the Accommodator to purchaseyour proportionate share of a larger "A" rated commercialbuilding; 5-You may choose a business center, a medicaloffice building, or similar high-end property; and lastly, 6-You get a deeded interest in this property, so you cankeep it, resell it, pass it to your heirs, or even gift itto charity upon your death. The way that this works is all the new fractional owners, or"Tenants in Common" hire an ace Management Company to handleall the property management tasks. The company finds andkeeps high quality tenants, does the maintenance andupgrades, pays the property taxes, and handles all the dayto day crisis that arise. Probably the three most importantfactors in this entire process are: 1-Your choice of companythat offers the properties for sale; 2-the Accommodator,and; 3-the management company. Make sure each of the three parts is a top notch with proventrack records. Anything less could spell disaster. When this 1031 option is done properly, your benefits willbe: Deferral of all Capital Gains, Good-bye Tenants, Trash and Toilets!Hello Tahiti! Paula Straub is a Financial Advisor, Insurance Agent andMortgage Loan Originator in San Diego, CA. As a successfulbusiness owner, Paula strives to guide clients to financialindependence in the most timely and efficient mannerpossible. (c)Paula Straub - All Rights reserved =-=-=-=-=-=-=-=-=-=-=--=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= How much would you pay to save thousands in Capital Gains =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-
MORE RESOURCES: This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news
Google News |
|
|
|
RELATED ARTICLES
Real Estate Investing - Basis Explained Our complex IRS code requires that your, as a real estate investor,accurately calculate your "basis" in investment property when reportinga gain or loss on a tax return.Your monetary gain or loss when you sell investment property is determined by comparing the sale price to the adjusted basis in the property. Real Estate: Financial Considerations $$$ Raw land as opposed to improved property is much more difficult to finance through traditional lenders. The main reasons are that it generates very little income, development costs can be expensive, there are no buildings or improvements that can be used as collateral, and it is often considered speculative. Trading Inspectors! As sure as the spring flows at the Fountain of Youth, a home inspection provides a stream of knowledge to wash away the fears of homebuyers. But fear may be replaced by frustration if the wrong inspector is chosen!Should Tradesmen be Home Inspectors?There are some who say that the best home inspection is an inspection where all the trades are represented by a tradesperson from each specialty. Achieving Positive Cash Flow from Your Real Estate Investments Even if you're counting on rising property values to eventually make a profit on an investment property, it's far more desirable to have a positive cash flow each month. If you're losing money on a property every month, it may not take long until your future profits will have been lost. Selling by Owner Tips Do strangers scare or intimidate you? If you're planning to try to sell your home yourself, you'll have to get used to it. You'll also be opening yourself up to potentially dangerous situations and legal liabilities. Choosing a Reputable Real Estate Appraiser When you are considering purchasing a property; either for investment or personal use you will need to hire a real estate appraiser. If you are financing the purchase through your credit union or another financial institution will most likely be required to hire a real estate appraiser to perform an appraisal on the property. Taxes When You Sell Your Home What's the difference between death and taxes?Death doesn't change every time Congress meets. But taxes certainly did in 1997, and the Taxpayer Relief Act of that year made a dramatic difference in the tax liability of those who sell their own homes. Before You Buy A House - Top 10 Tips There are serveral things you need to think about and check on before you buy a house. Even looking at so many houses can be confusing. Buying Property in Spain - How to Avoid Paying over the Odds Spain has a lot to offer Northern Europeans and until recently there was a marked difference between the price in their home country and a similar Spanish property. However many buyers have found to their cost that they paid way over the odds. Four Reasons To Offer Seller Financing An example of seller financing: Years ago I bought a rental property, and nine months later sold it for 15% more, without fixing or improving a thing. The easy terms are what sold it. What You Can Do To Sell Your Home Fast Yes, you want to sell your home and you want to sell it fast. It may be a seller's market and every other home in your neighbourhood is selling and you think it's going to be a cakewalk selling your home. How to Calculate Real Estate Rehab Profits If you are investing in real estate you will face a variety of challenges. First you have to find the right property. Encouraging Debt Most of us don't talk about money, finances, credit, debt.. How to Build a Real Estate Investing Power Team As you continue to read about real estate investing, you will no doubt come across the term 'power team'. What is this 'power team'? A power team is a group of people without whom successful real estate investing becomes very difficult, if not impossible. Home Warranties: Are They Too Good To Be True? What is a 'Home Warranty?'A home warranty is like an insurance policy. In fact, in some states the Insurance Commission may even regulate them. Home Equity Loans - Beware of Appraisal Fraud A new report by the independent Demos group has revealed what may not be a surprise to many people - corruption is rampant in the home appraisal industry. The bust in the dot-com market of some five years ago has left would-be lenders with a surplus of cash to lend. Selling Your Own Home - Pet Issues If you are selling you own home, you need to consider the effect of pets. People who are working with a real estate broker are sure to get coached about the potential negative effect of pets. Getting Raw Land, Not a Raw Deal! There is more to buying raw land than meets the eye and more than a few individuals have wished they'd had a second chance upon finding themselves duped, conned, misled, ill-advised, uninformed, oversold, undereducated and often unprepared. They realize, often too late, that a raw land purchase should be properly investigated, evaluated and negotiated using a logical and rational plan. The Ultimate Short Sale Secret Buying foreclosures can be extremely profitable for real estate investors. However, most of these homeowners are mortgaged to the hilt. Regarding Real Estate On Leased Land 1.Why are there so many properties on leased land?There are several situations here.
|
| home | site map |
| © 2006 TIGER MEDIA |