When you invest in real estate, you have to have a long term vision and patience. Unlike buying stock which can be readily purchased and sold, investing in real estate does not afford a quick sale. While it is true that in years past, people were able to flip properties and make fast money in real estate, for most real estate investors the idea is to buy and hold real estate. Some investors in real estate will benefit from federal income tax breaks and other investors in real estate can hold a piece of property and later sell it and buy other property while deferring the payment of any federal income taxes until the real estate is cashed out. Real estate is not a liquid investment and you may need to consider a long term strategy or option even if you are considering a shorter term investment in real estate. Read our articles on investing in real estate and learn about problem tenants and how to handle them. Learn about finding the right team to help you navigate the world of real estate investing. And, finally, learn about how to structure your investments, insure your real estate investments and minimize your federal income taxes.
1031 Exchange: Real Estate Market Conditions Affect Deadlines
A 1031 exchange allows you to buy and sell investment property including real estate and defer paying taxes to the IRS. Real estate market conditions may make it harder to sell the old property and potentially prevent a successful 1031 exchange. Learn how real estate market conditions can affect a 1031 tax exchange or Starker exchange and why a reverse exchange may be effective in this housing market.
Investing: ETFs And Taxes
Can investing in exchange-traded funds, or ETFs, help you with taxes? ETFs are often based on a stock or another index and so are not actively managed. With passive management, an ETF has less trading activity, so there are fewer taxable events. ETF investors benefit from this approach because they may pay fewer taxes.
Flipping Property As A Good Investment
What is a good investment? Ordinary folks become wealthy people through investing in real estate and flipping property. Whether you're using property for rental income or flipping property you have bought and renovated, real estate can help you build wealth. How can you build wealth by flipping property?
1031 Exchange – What is Cost Basis?
Learn how cost basis is calculated for a 1031 tax exchange. 1031 exchange expert Julianna A. Clementi-Ryan explains what's involved in determining cost basis.
1031 Exchange – Recapture Depreciation Tax
When you own an asset for business or investment use you can claim some depreciation as that asset drops in value. When you later sell that asset the IRS wants to get back, or recapture, some of the depreciation. Our 1031 exchange expert explains how recapture depreciation tax works.
1031 Tax Exchange Timing
Depending on when you do your 1031 tax exchange you may be able to claim a failed or partially failed 1031 exchange on your taxes. Learn how the timing of a 1031 exchange affects tax straddling. Be sure to discuss the timing of your 1031 tax exchange with your CPA or tax attorney.
What to Ask a 1031 Exchange Company
When you want to do a 1031 tax exchange you have to find a qualified intermediary, an impartial third party who will hold your funds. But how can you find a trustworthy 1031 exchange company? Ask them how long they've been in business, what insurance they have, what experience the staff has, where your 1031 funds will be held and what to do if the 1031 company goes bankrupt. Don't just rely on recommendations to find a 1031 exchange company.
1031 Exchange: 45 Day Rule
When you're doing a 1031 tax exchange you have 45 days to identify your replacement property. The replacement property in a 1031 exchange has to be like kind property. So you have 45 days to find another domestic real estate property if the property you plan to sell is in the U.S. also. Learn whether weekends and holidays are included in the 45 day rule for 1031 exchanges.
1031 Reverse Exchange
If you're doing a 1031 tax exchange on an investment property and you've found your replacement property but not yet sold your first property you'll want to do a reverse exchange. A 1031 reverse exchange allows the 1031 company to take title to the property until you sell it.
1031 Exchange – Second Home Rules
When you want to do a 1031 tax exchange for your second home you need to make sure that you're not using the home more than 14 or 20 days of the year. Learn more about 1031 tax exchange rules for second homes and check out our other 1031 videos at expertrealestatetipsl.net.