As you’ve likely already discovered, divesting yourself of substantially appreciated commercial real estate investments can be tricky at best. A straight sale exposes you to a huge long-term capital gains tax payment. A 1031 exchange has numerous rules and narrow time frames that can make it unfeasible. What to do?
Commercial Real Estate
Sellers of highly appreciated assets including owners of real property and businesses are keenly aware of the tax ramifications of selling their assets. People will choose to sell their businesses or property for many reasons, including health reasons, lifestyle choices, a desire to be free of the time and other commitments required to manage such assets. Many owners are reluctant to sell their appreciated assets because of the tax burdens they may face, even when doing so is at odds with the goals they desire and could achieve by selling.
It’s time to exit your career as a property owner, and you need to seriously consider what you are going to do with the sale proceeds of your real estate portfolio. At the very least, you are likely concerned with how much of the profit you stand to lose in capital gains taxes.
Replay the “How to Incorporate Deferred Sales Trusts Into Your Business to Increase Real Estate Listings and Business Sales” webinar hosted by Greg Reese of Reef Point, Inc. Reef Point LLC was founded by Gregory Reese and is one of only 13 Trustees in the US for Deferred Sales Trusts. Greg is also the CEO and founder of AmeriEstate Legal Plan which provides easy and affordable Estate Planning, Asset Protection, and Elder Law services with its network of provider attorneys.