How To Get the Most Out of Your Real-Estate Investing

If you are looking to maximize your real-estate investing then you should consider utilizing the power of a 1031 exchange. The 1031 exchange is a process that allows you to defer capital gains tax on investment real-estate while reinvesting your money into new real-estate – A much better alternative to the painful process of simply selling your property and biting the bullet when it comes to capital gains tax. Originally, a 1031 exchange was designed to facilitate the movement of large tracts of agricultural land held by essential food growers who were land rich and cash poor. Today, the application of section 1031 is available to any real estate investor wishing to defer paying tax on profits and who is willing to continue investing.

A 1031, or like-kind exchange, gives you the freedom to reinvest your money without fear of capital gains tax and allows you to reinvest your tax dollars for your benefit. This is a powerful tool for any real estate investor looking to shape their portfolio and take their real-estate investing to new heights.

How the New Tax Plan Affects 1031 Exchanges

A 1031 exchange is the go-to process for anyone looking to maximize their real estate investing and defer capital gains taxes. But how will president Trump’s new “Tax Cuts and Jobs Act of 2017” impact 1031 exchanges?

In the past, a 1031 exchange could be used to defer capital gains taxes on both real estate and personal property. If you had a house with a bunch of furniture inside you could exchange both the house and the furniture without encountering any capital gains taxes. Under this new bill, personal property can no longer be exchanged using the 1031 method. However, if you were already in the process of exchanging personal property and had closed on a sale or acquired replacement property before December 31, 2017, then you are free to finish the exchange in 2018.

While these changes will have a big effect on art collectors, real estate investors will come out on top. Those looking to utilize the power of a 1031 exchange on their real estate are still free to do so.

If you want to see what else is covered in the “Tax Cuts and Jobs Act of 2017” follow this link to read the full tax plan.

2018 Tax Plan is Drawing Northeastern Homebuyers to Florida

Florida has always enjoyed sunnier weather than the frozen Northeast. And after the 2018 tax plan, Northeasterners are noticing that the Sunshine State has a much friendlier property tax and no personal income tax. According to Business Insider, a resident from Massachusetts who would have had to pay over $14,000 in property and personal income tax can save almost $7,000 by relocating to Florida.

The expected influx of Northerners as a result of the tax changes follows the larger trend of homebuyers migrating south. To read more on that visit Homebuyers Heading South.