Posts tagged recaptured depreciation
American Families Plan and Real Estate Investments–Capital Gains and Carried Interests

The 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.

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Tax Cuts and Jobs Act Changes Considerations in Section 1031 Exchanges

A 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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