Real estate ownership can provide short-term tax benefits and is an important part of a long-term plan to build generational wealth.
Read MoreProposed legislation would increase the hold period for long-term capital gains treatment on carried interests to five years. This change would create a conflict of interest for real estate fund managers by widening the disparity between fund managers and investors.
Read MoreThe American Families Plan proposes the elimination of the long-term capital gains rate. If passed as proposed, these tax changes are likely to reduce transaction volume and shift real estate investment focus from long-term gains to short-term returns.
Read MoreThe real estate investment strategy of doing successive Section 1031 exchanges and planning for a stepped up basis upon death may no longer be viable if the Biden tax plan becomes law.
Read MoreA real estate investor might start small, with a single duplex and eventually, through a series of purchases, sales, and reinvestments, the real estate investor may own multiple large apartment complexes, office buildings, or even high-rise mixed-use buildings. In those instances, although the primary purchase was real estate, each purchase would come with a certain amount of personal property in the form of appliances, furnishings, supplies, and other equipment necessary to operate the real estate. Comparing a real estate transaction to a violin purchase, purchasing the violin would be akin to purchasing the real property, and purchasing the bow and case would be more like the personal property that is purchased with the real estate investment.
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