Vanessa Rush’s Post

Before you settle on something that isn't quite right, see what a VA Renovation Loan could do for you. Transforming a property is more affordable than you might think. Contact me to learn more about what our Renovation team can do for you!

Understanding 1031 rules is crucial to avoid pitfalls in your exchange process. 🚫 Here are the key rules to keep in mind: 👇 🏢 𝗟𝗶𝗸𝗲-𝗞𝗶𝗻𝗱 𝗣𝗿𝗼𝗽𝗲𝗿𝘁𝗶𝗲𝘀: Exchange properties must be of the same nature or character (e.g., commercial buildings, vacant land). ⚖️ 𝗘𝗾𝘂𝗮𝗹 𝗼𝗿 𝗚𝗿𝗲𝗮𝘁𝗲𝗿 𝗩𝗮𝗹𝘂𝗲: The replacement property must be of equal or greater value; 🥾 𝗡𝗼 𝗕𝗼𝗼𝘁: Receiving non-like-kind property, cash, stocks, or debt relief does not qualify in an exchange; it is a taxable event. 📝 𝗦𝗮𝗺𝗲 𝗧𝗮𝘅𝗽𝗮𝘆𝗲𝗿: The name on the title deed for the replacement property should be the same as the property being sold. Additional title holders are allowed in the new property. 📅 𝟰𝟱-𝗗𝗮𝘆 𝗜𝗱𝗲𝗻𝘁𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗣𝗲𝗿𝗶𝗼𝗱: Identify potential replacement properties within 45 days of selling the relinquished property. ⏳ 𝟭𝟴𝟬-𝗗𝗮𝘆 𝗘𝘅𝗰𝗵𝗮𝗻𝗴𝗲 𝗣𝗲𝗿𝗶𝗼𝗱: Complete the entire exchange within 180 days of the sale. Successfully navigating these rules allows you to leverage the 1031 exchange process The 1031 exchange is time-sensitive with strict regulations. If you’ve recently sold an investment property and need to find a replacement property quickly, ⬇️ Visit the comment section below to get in touch Stay connected for more insights on how to navigate real estate investments and tax strategies effectively. #1031exchange #taxdeferral #realestate #multifamily

It's important to remember that no two IRAs are alike. Our Roth vs.Traditional IRA calculator can help you visualize the monetary differences between holding your savings in a Roth IRA or a Traditional IRA: https://hubs.li/Q02z5Nrf0 #IRAcalculator #rothira #traditionalira

COO, Jeff Holzmann contributes to the Commercial Property Executive article on whether or not cap rates have peaked, maintaining the valid point that 'the future trajectory of the cap rates in the industry will depend on what the Federal Reserve does with interest rates in the coming months'. To read the article, please click the link below.  https://lnkd.in/gGMs4-F2 #rreafholdings #pressfeature #caprates

Should You Consider Buying a Property Under a Trust? 🏡 While many begin their property journey under their individual name due to simplicity and tax benefits like negative gearing, growing your portfolio can bring challenges such as: * Borrowing capacity limits * Higher land tax due to multiple properties held under one name * Significant capital gains tax when selling Using a trust structure may help overcome these challenges: * Boost borrowing capacity: Some lenders assess trust loans independently, keeping existing loans separate. * Land tax savings: In certain states, land tax may be assessed per trust rather than cumulatively. * Tax efficiency: Family trusts allow income or capital gains distribution to family members with lower tax rates, reducing your overall tax liability. Additionally, purchasing property through a trust offers other benefits, such as: * Asset Protection: Safeguard your assets from legal claims or creditors. * Estate Planning: Simplify the transfer of property to future generations. However, trusts have their drawbacks: * Setup and ongoing costs: Establishing and maintaining a trust can be expensive. * Limited initial borrowing capacity: Many lenders don’t apply negative gearing for trust loans. * Tax trade-offs: You may forgo negative gearing benefits initially but gain long-term advantages if the property becomes positively geared. While trusts offer unique advantages, they come with complexities. It’s essential to seek advice from a financial advisor or accountant to determine if a trust aligns with your property investment goals. Need help? Let us guide you through your options and help you build the right strategy. Chat with us today! 🚀 www.triplemfinance.com.au #triplemfinance #mortgageadvice #realestate #trustfund #investmentstrategy #trustborrowing

In the previous case, you at least made a profit to pay the capital gains. Now, let's take a scenario where you bought an apartment in January 2018 for ₹80 lakhs and sold it today for ₹95 lakhs due to a personal emergency. This is where it gets tough. If indexation was applicable, you actually made a loss of ₹11.76 lakhs and would have paid 'Zero' LTCG tax. But with the new method, @nsitharaman will add salt to your wound. She will take ₹1.87 lakhs from you as LTCG. Your net loss becomes ₹13.63 lakhs. Again you might spent many many lakhs more in loan interest alone. Removing indexation defeats the whole purpose of LTCG. This affects everyone and will push more people to undervalue their transactions, increasing the use of black money. This makes real estate investments less attractive and could drive our construction sector into a even bigger crisis

Can you answer this tax question... Mary owns a farm with a basis of $500,000, a FMV of $400,000, and a mortgage of $200,000. She exchanges the farm for stock in a transfer under IRC section 351. What is her basis in the new stock? A. $300,000. B. $200,000. C. $500,000. D. $700,000. Post your answer in the comments below. - https://lnkd.in/emDt264J #TaxPro #TaxTime #TaxPlanning #TaxAdvice #TaxSeason #TaxStrategy #TaxExperts #TaxConsultant #TaxHelp #TaxPreparation #TaxSaving #TaxSolutions #IRSHelp #TaxLaw #TaxCompliance #EAExam #EAStudy #EAExamPrep #EnrolledAgent #TaxProfessional #EACertification #TaxExam #TaxEducation #PassTheEA #EAReview #EAExamTips #EAExamSuccess #TaxSpecialist #EAJourney #EAExamGuide

Thinking of selling a second property or cashing in a share portfolio? Capital Gains Tax (CGT) may apply to profits. To reduce this, consider gifting or splitting assets with your spouse or civil partner, utilising both CGT allowances. Transfers must be unconditional. Learn more here: https://bit.ly/3KzEuit #Selling #Property #CGT #Profits

The Autumn Budget 2024 has sent ripples through the UK property market, with significant changes to SDLT, investor taxes, and more. 🏡💰 Compass delves into the implications of these changes for conveyancers and buyers alike. Read our first reaction to it... 👉 https://lnkd.in/eKTghpzA #AutumnBudget2024 #PropertyMarket #Conveyancing #UKHousing #SDLT #FirstTimeBuyers #Investors

IMPACT OF REMOVAL OF INDEXATION FROM SALE OF PROPERTY Our Finance Minister reduced Long Term Capital Gains (LTCG) Tax on properties to 12.5%, but cleverly removed indexation, which adjusts the property price at the time of sale, to account for inflation. How does this impact us? Let us understand it with the given two situations Situation 1: Suppose you bought an apartment in January 2009 for 50 lakhs. Fifteen years later, you sold it today for 1.5 crore. With indexation, the ₹50 lakhs you paid 15 years ago is considered to be worth 1.32 crore today. So, the net profit or capital gain is only 17.5 lakhs, and you'd pay only 3.5 lakhs as Capital Gains Tax at the rate of 20%. But without indexation, your capital gain now is ₹1 crore, and at 12.5%, you'd end up paying ₹12.5 lakhs in tax. Essentially, the government takes 9 lakhs more than the old method. Your net profit after buying a property and holding It is just ₹5,01,825 for 15 years. You might have paid much much more in loan interest alone. Was it really worth it? Do you call this cleverness or crookedness? Situation 2: In the previous case, you at least made a profit to pay the capital gains. Now, let's take a scenario where you bought an apartment in January 2018 for 80 lakhs and sold it today for *95 lakhs due to a personal emergency. This is where it gets tough. If indexation was applicable, you actually made a loss of 11.76 lakhs and would have paid 'Zero' LTCG tax. But with the new method, will add salt to your wound. They will take 1.87 lakhs from you as LTCG. Your net loss is ₹13.63 lakhs. Again you might spend many many lakhs more in loan interest alone. Removing indexation defeats the whole purpose of LTCG. This affects everyone and will push more people to undervalue their transactions, increasing the use of black money. This makes real estate investments less attractive and could drive our construction sector into an even bigger crisis.