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than Larry Underhill. He has been the number one Realtor in the Wichita real
estate market for the past six years and has been one of the top three Realtors
in the United States for the past five years.
Wichita Real Estate
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find listed here some of the more progressive Wichita real estate agents who
have turned to the Internet as a means of putting local residential properties
before a national home buying audience.
Are you tired of Tenants, Toilets and Trash
by Paula Straub
Wouldn't you rather go to Tahiti?
Are you a landlord
with rental property whose value has significantly appreciated?
Are you
ready to cash in those profits and take that trip to Tahiti?
Before
selling your property, check with your accountant who will tell you that you
will be paying $60,000 in Capital Gains Tax to Uncle Sam. Your accountant will
also tell you that adding another $20,000 to your income by that sale is called
recaptured depreciation. This will bump you into the next tax bracket and doom
you next April 15th into sending the IRS a check for maybe another
$7,000.
Are you still ready to sell that property?
It looks like
that trip to Tahiti is going to be sometime in the far future…
But
wait! You decide to check with your realtor and then find out about a 1031
exchange to defer your Capital Gains. Your realtor tells you if you buy another
like-kind rental property of equal or greater value, you won't get hit with the
gains tax on the sale. That is all fine and good, but it does not really get
you out of the headaches associated with collecting rent, keeping your unit
occupied, finding clean/classy tenants that won't trash the place, nor does it
keep you from getting that 2am call to fix an overflowing toilet. To top this
off, now you have to pay more in property taxes and must charge higher
rent.
Hmm…maybe this idea is not the ticket to that South Pacific
paradise either.
This is the dilemma I heard from my financial clients
again and again. They were frustrated and felt trapped in their current
situation. So what is a frustrated income property owner to do? After a lot of
research and roadblocks, I found the perfect solution that has changed the
lives of my clients and took away stress to bring enjoyment of life.
For
anyone who is tired of being a landlord and who owns a rental/commercial
property that has gone up a lot in value, take heart.
A 1031 exchange into
a Tenant In Common Property may be your answer.
There are very specific
rules to follow set by the IRS, and the entire detailed process is the subject
for a future article, but here's the gist:
1-Sell your current income
property;
2-Before the close of escrow, you declare via a Qualified
Intermediary (also called an Accommodator, who is a qualified third party) that
you intend to do a 1031 exchange into a Tenant in Common Property;
3-Work
with a reputable company to identify a property that you would like to purchase
an interest in;
4-At the close of escrow, your proceeds are transferred by
the Accommodator to purchase your proportionate share of a larger "A" rated
commercial building;
5-You may choose a business center, a medical office
building, or similar high-end property; and lastly,
6-You get a deeded
interest in this property, so you can keep it, resell it, pass it to your
heirs, or even gift it to charity upon your death.
The way that this
works is all the new fractional owners, or "Tenants in Common" hire an ace
Management Company to handle all the property management tasks. The company
finds and keeps high quality tenants, does the maintenance and upgrades, pays
the property taxes, and handles all the day to day crisis that arise. Probably
the three most important factors in this entire process are:
1-Your choice
of company that offers the properties for sale;
2-the Accommodator,
and;
3-the management company.
Make sure each of the three parts is
a top notch with proven track records. Anything less could spell
disaster.
When this 1031 option is done properly, your benefits will
be:
Deferral of all Capital Gains,
A monthly contractual income
(usually based on 6-7% return on equity),
Building depreciation for tax
savings,
Unlimited property appreciation potential, and
No more
headaches of property management.
Good-bye Tenants, Trash and
Toilets!
Hello Tahiti!
How much would you pay to save thousands
in Capital Gains Tax? I'll teach you for free in a Teleconference that may
change your life. Sign up at ==>
http://www.savegainstax.com
Paula Straub is a Financial Advisor, Insurance Agent and
Mortgage Loan Originator in San Diego, CA. As a successful business owner,
Paula strives to guide clients to financial independence in the most timely and
efficient manner possible.
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