 …But Not a Drop to DrinkOwning real estate can be just like the famous line, ‘water, water everywhere and not a drop to drink’ in Samuel Taylor Coleridge’s poem, “The Rime of the Ancient Mariner”. Where the ancient mariner’s not a drop to drink was water, real estate investors face taxes they cannot swallow. Fortunately, there’s a silver lining. Homeowners can breathe a sigh of relief, knowing they won’t be burdened with capital gains tax on a gain of less than $250,000 (or $500,000 if married, filing jointly). This tax exemption provides a sense of security and peace of mind. Although the homeowner exemption is unavailable for investment properties, owners of income properties can defer taxes until later. Many are familiar with a §1031like-kind exchange of properties, a strategy that allows you to defer taxes on the sale of an investment property by reinvesting the proceeds into a similar property. This can be done either directly or through a beneficial interest in a Delaware Statutory Trust known by the initials “DST” or shares of Real Estate Investment Trust (REIT). Some prefer to spread the recognition of capital gains over multiple tax years through an installment sale or Charitable Remainder Trust (CRT). If you don’t want to put all your eggs in one basket, then a CRT may be your best choice. When you exchange into a single property or multiple properties owned by a DST or a large portfolio owned by a REIT, you are investing only in real estate, a single asset class, which carries a concentrated risk. In a CRT, you can reduce risk by spreading your investments across many companies in multiple industries operating worldwide. Many investors have had bad experiences investing in stocks and bonds, which has led them to invest their money in real estate ownership. Fortunately, as I wrote in “Investing 3.0: What the Creators of Index Funds Discovered and How to Profit from It“, investment scientists have developed newer ways to invest in stocks and bonds. Please contact me to find out which strategy may work best for you. Website: Lifetime Legacy Services  Real Estate Strategy: Unlocking Your Property Potential Your real estate holdings are more than assets; they’re the cornerstone of your financial journey. We see beyond properties; we see opportunities. Whether you want to optimize returns, streamline property management, or unlock hidden value, we tailor real estate strategies to your lifestyle and retirement aspirations – whatever they may be. Let us help you turn your real estate portfolio into a powerful engine driving your financial success Learn more about: WHAT WE DO Speaking Engagement Over the next few months, I am offering complimentary educational seminars with industry leaders for their clients or employees. A CPA firm we’ve engaged with recently has decided to utilize this opportunity as part of their ongoing education series for their clients. Join us in reviewing a presentation designed to help clients recognize the issues and feel confident with this strategy. Please let us know if you would like to arrange for a presentation or know others who want to expand what they know and provide to their clients. Contact us: Presentation, Webinar, Speaking Engagement Email: client.services@lifetimelegacyservices.com Have you read my book? “Investing 3.0” by Rick Raybin Rick Raybin, CEO & FounderRick Raybin, Managing Director of Lifetime Legacy Services, is a Certified Financial Planner™. Lifetime Legacy Services (LLS) is an independent, fee-only financial planning and advisory firm that focuses on putting the needs of its clients above all else. “This is my purpose in life.” – Rick Raybin Rick has been providing financial advice since he began his career as a CPA. In 2006 he launched LLS as Lifetime Capital Group, a Registered Investment Advisor. In 2017, he published “Investing 3.0: What the Creators of Index Funds Discovered and How to Profit from It”. Rick is passionate about serving his clients well and pursuing excellence in everything he does – from work to developing educational content for investors to spending time with his family and loved ones. About Rick Raybin Did you find this information helpful? If you know anyone you think might benefit from our advise and expertise, please feel free to forward this to them. Thank you! |
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