Miscellaneous
If you’re an investor looking to sell a property you didn’t live in and avoid paying the capital gains tax on the sale, you need to think about using a tax deferred exchange. That means, basically, rolling the profit you’d make from that sale directly into your next purchase.In our market, it’s the perfect time to sell. Is it the perfect time to buy for an investment property, though?Let’s say you sell a 1,500 square foot house and buy a 2,500 square foot house. Then, let’s say you sold that slightly bigger house and bought a duplex. With those three purchases, you’re getting a bigger investment and putting your equity to work for you by having your tenants pay rent, and still not paying any capital gains tax. You’re delaying paying any meaningful taxes until further down the road when you’re not in your strongest income years. “If you’re an investor, you need to think about using a tax deferred exchange. ” The question, then, isn’t whether investing in real estate is a good idea, but how to do it in a savvy manner. I have no problem paying taxes; I just don’t plan to be paying more than I need to.If any of this interests you, reach out to me by giving me a call or sending me an email. I’m excited to hear from you!