A 92 Year-Old Solution for Real Estate Investors Facing Higher Taxes in 2013

The familiar adage, “It’s not how much you make, but how much you keep” rings truer than ever for real estate investors in 2013. Not only have capital gain taxes increased significantly for high earners, but many investors below the top tax bracket face an additional 3.8% surtax on passive investment income like capital gains. Fortunately, IRC Section 1031, a provision which has been in the tax code since 1921, provides critically needed tax relief.

Under the American Taxpayer Relief Act of 2012, the top capital gain tax rate has been permanently increased to 20% (up from 15%) for single filers with incomes above $400,000 and married couples filing jointly with incomes exceeding $450,000. In addition, the new IRC Section 1411 3.8% Medicare surtax on net investment income, which includes capital gains, results in an overall rate for higher-income taxpayers of 23.8% — a staggering 58% increase from 2012 tax rates!

For the full article, including the 4 Steps Involved in Determining Capital Gain Taxation and the Snapshot of 2013 Federal Capital Gain Taxation, Read More…

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1031 Basics: Selling a Property Held for Investment?

1031 Exchange Basics

One of the most important things to do whenever you are selling a property held for investment or used in a business is to first discuss your transaction with your tax and/or legal advisors before closing on the sale. After speaking with a tax advisor, many real estate investors may be surprised to find the total taxes they would owe on their sale can be considerably higher than expected.

To learn about the first steps needs to initiate a new 1031 exchange, Read more…

IRS Issues Proposed Regs on 3.8% Medicare Tax on Net Investment Income

The IRS has issued Proposed Regulations, REG-130507-11, regarding the new 3.8% Medicare tax on net investment income imposed by IRS Section 1411. The proposed regulations affect individuals, estates and trusts. For more information, Read More…

1031 Exchange Webinar for Accountants (1hr CPE Credit)

Title: The Power of Strategy: Mastering 1031 Tax Deferred Exchanges
Presenter: Scott Saunders, Asset Preservation, Inc.

Course Description
This one hour course provides a concise and thorough overview of IRC Section 1031 tax deferred exchanges for accountants, CPA’s and tax advisors. In addition to covering critical IRS time deadlines, like-kind requirements and other exchange-related issues, the class will provide a summary of current developments including applicable Revenue Rulings, PLR’s and other IRS guidance on current issues related to exchanges.

Course Details:
Date: Monday, January 14, 2013
9:00 a.m. – 10 a.m. (PST)
Cost: Free
CPE Credits: 1.0 hour (Accountants & CPAs)

Click here to View Details and Registration Info at cpaacademy.org

IRS Delays New Tangible Property Regulations

The IRS recently released Notice 2012-73, which delays the effective date of its new tangible property regulations by two years. The IRS recognized there was significant complexity and effort required to implement the tangible property regulations and is providing taxpayers more time to fully understand the impact of the new tangible property regulations. For the full notice, Read More…

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