I thought it was less then that. I havent lived in any house’s that we have redone so always bite the capital gains tax unless we find other property to invest in before the 45 days or what ever the time slot is
Word. In 3-4 years of being involved in real estate transactions I’ve never been able to actually pull off a 1031 exchange. :rofl
We have done it once. They really dont allow you much time to find any thing. I’ve been looking around with my dad for a new project but nothing decent lately
It’s a nice way to get to an early retirement too!
Join the club. Jammer and I are board members.
Fuckingg shit balls I dont want to be in a club with you
I have done 1031’s, but stopped, because I would be deferring taxes to a time when they will be higher… at least i believe taxes will go up.
You have almost 6 months, depending how you play it, you have a certain amount of time to name properties your considering ( up to 3) and must close on one of those properties in specified time. I’ll make you guys do the research if ypu care enough!
I would agree, if he wanted to hold, disagree if theres a good chance he will sell in a year. I believe to sell in one year there would be a loss. Thats ALL I am saying.
ding ding
much more complicated. Most pay 15 %, to be more accurate, currently, capital gains may be taxed at 5 percent, 15 percent, 25 percent or 28 percent, or a combination of rates. These tax levels are known as long-term capital gains and apply to assets that you hold for at least 366 days (more than one year). The 25% rate is for investors that have depreciated their property already.
For many years, investors whose overall income put them in the top four income tax brackets faced a long-term capital gains rate of 20 percent, while lower-income investors paid capital gains taxes of 10 percent.
Tax-law changes in May 2003, however, lowered the rates by 5 percent each. Most investors, which generally means folks in the higher income ranges, now find their capital gains taxed at 15 percent. Taxpayers in lower income brackets pay only 5 percent on most investment earnings. (YAY BUSH ECONOMY)
These lower rates were scheduled to end on Dec. 31, 2008.
However, in May 2006, lawmakers agreed to extend this tax break for investors for another two years. Now capital gains and qualified dividends will continue to be taxed at 15 percent (or 5 percent for lower-income taxpayers) through 2010. ( Obama said he will NOT sign an extension)
It should be noted guys, that there is potential for 0% cap gains this year… if your married and made less than 62K income, you can sell the property and not pay capital gains, and even better, if its you sell it after holding it over a year, you can pass on to the buyer the equivilent of a long term cap gain rate, if you sell it to another couple making less than 62k…and those buyers can sell the next day…and pay long term rates that you passed on. There are sooo many loopholes. Often its best to pay 15% and move on and make more.