Alternatives to 1031 Property & Asset Exchanges http://fun1031.com Sun, 05 Sep 2010 10:48:10 +0100 FeedCreator 1.7.2 http://fun1031.com/images/M_images/rss20.gif http://fun1031.com Alternatives to 1031 Property & Asset Exchanges http://fun1031.com/index.php?option=com_content&task=view&id=19&Itemid=26 And you thought your vacation home was only a benefit to you at the end of a long work week or a retreat for the family and friends. Think again.Currently the federal estate tax exemption is set at $2 million, increasing to $3.5 million in 2009, and going away in 2010. Then we start all over again at $1 million. Compound that with increasing the top tax rate from 45% to 55%... and Congress hasn’t even begun to address new legislation to combat the nation debt. (See article: It’s What We Don’t Know that We Don’t Know that Hurts. ) In a recent speech by John Edwards, he claimed, Rich people don’t pay their fair share so he proposes raising the capital gains tax from 15% to 28% for those making over $250,000 a year. Here we go. There is really only one way to look at it: taxes are going up or exemptions are going away. Tue, 07 Aug 2007 14:28:44 +0100 http://fun1031.com/index.php?option=com_content&task=view&id=18&Itemid=26 Families can be Families with a Preferred Family Limited Partnership With the outcome of the estate tax laws up in the air, it leaves tax planning a little unsettling. With the federal estate tax exemption now at $2 million per person, we don’t know if Congress will increase it, decrease it, or eliminate it. The chances are, in my opinion, that there will be some downward movement due, in part, to the consequences of a run-away national debt. (See article: It’s What We Don’t Know that We Don’t Know that Hurts. ) Suppose Henry and Ruth Johnson have a $5 million estate. They can currently pass $4 million of it onto their children without being taxed. That leaves $1 million. With the lifetime gift tax exemption of $1 million, they are in great shape. But suppose the estate tax exemption is reduced to $1 million per person. They now have a $2 million tax liability. With the gift tax rates ranging from 41% to 45%, giving the money away may not be the answer. What should they do? Tue, 07 Aug 2007 13:09:45 +0100 http://fun1031.com/index.php?option=com_content&task=view&id=17&Itemid=26 Free Cash or The Principal Residence Exclusion. What Does that Spell? The Good Life. I recently wrote an article that predicted Congress, with their need to create money to pay off the national debt, would compromise the step up in cost basis upon the death of a property owner. Currently, when you die, your property is transferred to your kids at its true market value vs. its original cost basis. That may no longer be true and your heirs may get stuck with a hefty tax bill. So, suggesting that this may happen, what should you do? Tue, 24 Jul 2007 13:24:35 +0100 http://fun1031.com/index.php?option=com_content&task=view&id=16&Itemid=26 Small Town USA: A Second Home Gold MineFor months now, clients and visitors to our website, www.fun1031.com (http://www.fun1031.com/), have asked, “what exactly do you do?” Well, it is time to put any questions to rest. I will first start with my philosophy and then explain our strategy; that way you will understand the method to our madness. After years of promoting Oregon real estate as a good investment, I was forced to reconsider my position several years ago. I worked off a very simple model that required a 20% down payment and a rental income that would pay the bills and generate an 8% cap rate. That worked well when homes with three bedrooms with two baths were selling for $165,000. Now that same house is selling for $325,000 and it doesn’t pencil unless you rely exclusively on the appreciation as your return on your investment. My philosophy has always been, “the numbers have to make sense at the time of acquisition (not on the come) and any appreciation in value or rental income is your reward.” Tue, 24 Jul 2007 13:12:15 +0100 http://fun1031.com/index.php?option=com_content&task=view&id=15&Itemid=26 “It’s What We Don’t Know that We Don’t Know that Hurts.” It all started when the Starker family had an innovative idea: to sell timberland in exchange for a contractual promise to acquire and transfer title to properties identified within five (5) years. That real estate transaction became known as the Starker Exchange and revolutionized the real estate industry with what is now commonly known as an IRS 1031 Tax Deferred Exchange. Thu, 05 Jul 2007 11:27:30 +0100