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.
Capital Gains: How Much Tax To Pay On Land Sale
Whenever you sell a property you have to pay capital gains tax on the difference between what the property was worth when you got it versus how much you sell it for. An accountant or tax preparer can help you determine exactly how much capital gains tax you'll pay as well as how much state tax to pay on the land sale. Capital gains tax rates are set by Congress and change periodically.
Is Rental Condo A Good Investment?
Investing in rental property often leads to questioning your investment when the market takes a dip. But with a relatively illiquid real estate market, it's not always a good idea to sell your investment because the short-term prospects seem volatile. But when investing in real estate, it is important to have an exit strategy.
Real Estate Minute: Builders Use Auctions To Sell Property
Real Estate Minute with Ilyce Glink More builders are using auctions to unload property Original Air Date: August 30, 2006
Appeal Court Decision To Retrieve Investment Property
When you buy debt from the FDIC on an apartment building, you should receive an assignment of the mortgage. What can you do to ensure your sale is valid and holds up in a federal court? And how can you appeal a federal court ruling that resulted in you losing your investment property?
1031 Doesn’t Work Overseas
A 1031 exchange allows you to defer taxes when selling a home by purchasing another one within a certain time period. Unfortunately, 1031 exchange laws do not allow for purchases outside the U.S. Current 1031 exchange rules require you to have designated a replacement property within 45 days of closing on your original property and then to close on the new property within 180 days.
Figuring Capital Gains Tax On Inherited Property
When you inherit property you inherit it at the market value of the property the day the person who owned it died. This market value is your cost basis when you calculate taxes while selling the property. In addition to federal capital gains taxes you'll likely have to pay state taxes on the sale of the property inheritance. Learn how to calculate the taxes on a property inheritance.
Consider Paying Off Mortgage
When you have a modest income, it can be difficult to make all your monthly payments and put aside savings. However, if you can manage to build up a savings, it might be worthwhile to pay off your mortgage. If you start saving your monthly mortgage payments, you will build up your savings in no time, and you will be earning the interest that you would have been paying to the mortgage company.
Investing In Real Estate With Siblings
Can a 1031 exchange be used when selling and buying new property with siblings? Hiring a real estate attorney is a good idea when buying a home with siblings. Here are the best steps to take when using a 1031 exchange and buying real estate with siblings.
Book Review: Two Years To Be A Real Estate Millionaire
Real estate investing can be a profitable venture. Matthew Martinez began real estate investing by buying properties close to where he lived and never buying investment property with negative cash flow. In his new book, 2 Years to a Million in Real Estate, he tells the story of how he turned real estate investing into a major success.
1031 Reverse Exchange
A 1031 exchange is used by a real estate investor who wants to sell an investment property he or she owns but does not want to pay any taxes. To avoid the payment of taxes, he or she sets up a 1031 exchange with one of the many companies that provides this service. In essence, the 1031 exchange company parks the money until you can find and close on a replacement property.