While cash is always the gold standard, touching it can lead to unintended and expensive tax consequences. If the sale of investment assets leads only to cash, the long hard work of achieving equity can be diminished by over 30%. A strategy that utilizes a Section 1031 approach can keep all of the cash intact […]
Archive | Section 1031 & Your Family
The Vacation Home Dilemma
Vacation homes can be a source of great pleasure during their ownership; the reality of how they are treated for tax purposes happens once you decide to sell the property. You may have determined that the cottage at the beach or condo slope side at the mountain is your “investment” property, however, the truth is, […]
Thinking About Selling Your Vacation Home? The Time To Start Planning is NOW!
There are two types of real estate that can be sold with advantageous tax treatment, your primary residence and your business/investment property. Favorable treatment exists for the sale of a personal residence if the property has been the primary residence of the taxpayer for two of the preceding five years. Section 121 of the Internal […]
Using Section 1031 to Help the Kids
At first glance, this sounds like mixing business with pleasure but it’s really not that far fetched! The traditional method to help the kids acquire a home would be to provide a gift or a loan that can be forgiven or repaid over time. The new gift limitation is $14,000 per person, per year. A […]