The 1031 exchange is one of the most intriguing things about real estate investing. Basically, by performing 1031 exchanges and continuing to reinvest your profits from previous real estate investments, you can defer paying your capital gains taxes indefinitely. Of course, to take advantage of this tax exemption, you’ll need to know a few important rules. Otherwise, you could end up with a massive (and unpleasant) surprise from the IRS after you sell your next property. 1031 Exchanges Only Work for Investment Properties Many people, when they first learn how a 1031 exchange works, will think to themselves, “Well, why...Read More
Maybe you saw an advertisement for foreclosed condos for sale in Dallas, TX, and thought to yourself how fantastic it would be to get a valuable property in a booming urban area while the price was rock bottom. The foreclosure market is often full condors or apartments for sale, along with other properties in Dallas, TX And as the area grows even more, we’re sure to see a pretty consistent flow of foreclosures to tempt investors in the future. But getting into foreclosure investing isn’t as easy as just picking up a cheap property. There are some things that you...Read More
One of the major expenses that real estate investors run into is capital gains taxes. Every time a property is sold, these taxes can create a hefty burden on your profit margin. But there’s a way around that, if the purchase falls into the right category. The IRS allows sellers to defer capital gains taxes by doing a 1031 exchange. Under this type of exchange, the property has to be held as an investment, not as a principle residence; it has to be exchanged for like-kind property; and there are specific time frames that have to be met. Identifying situations...Read More