Archive for the taxes Category

1031 Exchanges Defer Income and Capital Gains Taxes on Investment Properties!

Mumford & Sons - "I Will Wait" “It’s not how much you make, but how much you keep” applies to almost every aspect of your financial life.  It definitely applies to real estate investors, who face high tax rates when selling their investment properties. Fortunately, IRC Section 1031, a provision in the tax code since 1921, provides tax relief. Reflected below is a summary of the four ways investors will generally be taxed on the sale of an investment property if they DO NOT take advantage of Section 1031: Depreciation Recapture: First, taxpayers will be taxed at a rate of 2… Read More

Why Utilize a 1031 TAX-DEFERRED Exchange When Selling Investment Property??

"Movin' on Up" - The Jefferson's Theme Song Very simply put, a 1031 exchange is a tax-deferral technique!  The IRS's internal revenue code "Section 1031" (thus, the name "1031 exchange") allows an owner of property held for productive use in a trade of business, or for investment, to defer payment of taxes on any gain realized in the sale IF they exchange for "like-kind" property.  The tax is deferred (but not avoided) by transferring the basis in the relinquished or sold property to the replacement property. So, you ask, what is "like-kind" property?  Actually, all real property ca… Read More

Tax Laws Affecting Capital Gains on the Sale of Your Primary Residence!

Phillip Phillips - "Home" One of the biggest "boons" of owning and living in a home is the home-sale exclusion. As of May 6th, 1997 the tax codes changed on the sale of a principal residence.  The "old rules" no longer existed!  The old "1034 Exchange" stated that you could defer gains by "buying up" every two years (purchasing a more expensive property) or take the "over 55 years old one-time exclusion" of $125,000. Now we have provisions that if the property has been owned and used as a principal residence for two out of the last five years, you qualify for the following: *  a … Read More

Free Presentation: Appealing Your Oregon Property Taxes!!

"I've Been Working on the Railroad" - The Conductors FREE PRESENTATION:  APPEALING YOUR PROPERTY TAXES! Just in case you (like myself) recently opened your 2013-2014 property tax bill and nearly fell over, there could be some help on the horizon! My company, Real Estate Resource, along with an organization of other professional, independent Brokerages are coming together to provide you with an opportunity to possibly reduce your higher property taxes. We are organizing this event to offer high value service to our most valuable asset: YOU! You are invited to join us for light refreshm… Read More