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Non-Tech : Investing in Real Estate - Creative Opportunities -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (2606)	11/26/2017 9:43:30 AM
From: Riskmgmt	1 Recommendation Recommended By John Pitera Read Replies (1) \| Respond to of 2722

Hi JP, Yeah you could say that ((the tax brewing and incubation occurring as December approaches is really fascinating....)) I am watching closely the horse trading and trying to predict the impact it might have. As an example the IRS 1031 exchange is one of the biggest tax breaks EVER-seldom mentioned on SI. It allows an investor in real estate to parlay ones gains without paying tax. This was being considered for elimination. “A much-loved tax advantage in the commercial real-estate industry is on the chopping block even as chances dim for the passage of a broad federal tax overhaul this year. “ Fortunately, it now seems the latest news is that the 1031 will be retained but cleaned up a bit, originally intended for real estate it had gotten more broadly interpreted to include airplanes and football clubs. 1031 lives! There’s been plenty of anxiety over 1031 exchanges, which allow property owners to avoid taxes on profits from property sales if they reinvest them into real estate. In June, the Wall Street Journal reported that some lawmakers wanted to get rid of the benefit. For now, they lost out. The GOP tax plan keeps 1031 exchanges for real estate in place. As a bonus, it would also repeal the estate tax. therealdeal.com Why is this a big deal? Imagine if you could compound your gains in other investments, stocks, commodities, currencies without tax. Used properly that’s what the 1031 is able to do for investors in real estate. Anyone who has any investment real estate and is not using out is missing out of the best tool. Another tax advantage IRS 1034 has not been touched so far. Again if you own a home and aren’t familiar with this you’re crazy. It basically allows a married couple to make 1/2 million profit tax free. I am constantly amazed how many real estate fix and flippers and “investors” have never heard of it. I was hoping to get some CPA’s and other professionals to contribute so we could keep up with the changes. Regards, R.