I recently purchased a new home and have started thinking about long-term investment goals including eventually converting my home into a rental property or even keeping it as a second home. There is another tax strategy that I could take advantage of down the road. Today’s Wealth Building Wednesday discusses the principal residence exclusion which allows homeowners to have a gain on the sale of their primary residence.Read More
On this Free for All Friday¸ we are discussing the capital gain tax rates slated to increase on January 1st if Congress takes no action to stop it. Many within the real estate community are forecasting an increase in activity before year end. Investors want to sell their properties and pay the gain while the maximum rate for individuals is 15%. Unfortunately some of those investors many not be looking at their situation with eyes wide open. Below we discuss three common situations facing investors and how a 1031 tax-deferred exchange can help.