If you bought your home years ago, it’s very possibly worth a lot more now. But consider this… If you own a highly appreciated home, selling could trigger a huge federal income-tax gain well in excess of what you could shelter with your principal residence gain exclusion ($250,000 or $500,000 for joint filers). And on gains in excess of the above-mentioned exclusions, … [Read more...]
Exchanges
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Tax Reform Eliminates Tax Benefits of Business Vehicle Trade-Ins
Remember the good old days (a few weeks ago in 2017)? That was when you could use tax code Section 1031 to avoid paying taxes when you traded in a business vehicle for a replacement vehicle. (In 2017 it was the same story for an exchange of other personal property like equipment, collectibles and more.) Well, tax reform is here and it has killed the Section 1031 … [Read more...]
Tax-Smart Ways to Cash Out of your Real Estate Property
Yes. Section 1031 exchanges are a great way to avoid taxes when you’re acquiring bigger and better properties. But be aware! When the time comes to cash out, 1031 should not be used. What’s the best way to avoid taxes and keep cash in your pocket? There are three proven strategies you can take advantage of as you’ll learn when you read my new article titled Tax … [Read more...]
Beat the recapture tax on your home office!
Do you claim a home-office deduction? Are you thinking of selling your home and buying another? If you are, you’re in luck. You see, if you know what you’re doing, you won’t have to pay the unpleasant recapture tax. And you can increase the tax basis in your replacement home. Which means you win two ways. Want to find out more? Read my new article titled Tax … [Read more...]
When to avoid a 1031 exchange
As you may know, a Section 1031 exchange can serve as a highly effective tax strategy. How? By helping you defer paying taxes. Always a good thing. What you may not know is that there are two times when a 1031 exchange can work against you. Want to learn how to steer clear of two traps the IRS has set for you? Read my new article titled Tax Tips: The TWO Times to … [Read more...]