The main objective of purchasing and selling real estate properties for investors is to gain as much profits as possible. The Midas Legacy, a research services provider to entrepreneurs and investors reveals ways to maximize capital gains and how to purchase a property and pay later. Author and Publisher Jim Samson keeps Midas Legacy’s members and investors informed of loopholes in tax restrictions and regulations that are kept secret. He has 21 plus years of knowledge in investments, real estate, and business; and publishes columns, including the Best Business Blueprints, Retirement Calculator, and Real Estate Riches. The two loopholes some investors are unaware of that help investors grow their profits are 1031 exchange and 1031 reverse exchange.
What was hidden is now revealed by Jim Samson in his Real Estate column. Before discussing tax deferment and buy now and pay later programs, certain stipulations may prevent investors from participating. For an example, if properties are being purchased outside of the U.S. or for personal use, the 1031 exchange can’t be used. A stipulation to use 1031 reverse exchange is that an investor can’t have the same name on current title and new title. Now, let’s get to the discussions about how to take advantage of the 1031 exchange and 1031 reverse exchange.
The Midas Legacy informs investors to consider federal capital gains, state capital gains, and depreciation recapture taxes when selling real estate properties. A real estate investor is able to take advantage of 1031 exchange and avoid paying taxes if the gains received from a sale are invested into a new property or multiple properties. The property or properties purchased must be of equal value or greater. A rule in the exchange is that the investor has up to six months to finalize a property investment transaction.
Real estate investors who have properties on the market for sale and haven’t sold the properties, can benefit using 1031 reverse exchange program. An investor can buy new property without having to pay a down payment while another property is on the market for sale. Use the Exchange Accommodation Titleholder (EAT), which is a one-member limited liability company to hold name of current or new property. The Midas Legacy says investors are allowed six months to hold both properties and defer payment on the new property.
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