Continued from page 1
Get Creative About Your Investments
Another tax strategy is using
IRS Code, Section 1031. Section 1031 says no gain or loss will be recognized in exchange of property held for use in an investment. This allows savvy investors to purchase a property and later exchange it for one of like kind. For those planning to retire this means you can purchase a second home as a rental property/vacation home and build your investment. At retirement you can then exchange property for dream home you have always hoped for and defer capital gains tax. The savings is incredible. Of course, real estate deals like this can be tricky so always take advice from a real estate professional and be certain all transactions are done legally.
On Your Way To The Retirement Plans You Hoped For
Retirement can be a stressful topic for many people. However, more and more middle aged Americans seem to be using forethought and common sense to build life they know they want to have after 65. Education, creativity, clear thinking, asking questions and knowing kind of future you want to invest in is way to achieve success. Using tax system strategically to reach your goals will lead to a retirement full of joy, comfort and quality time to do what truly matters. When you are ready to search for a second home, or a place to start your retirement, enlist help of a seasoned REALTOR. One that knows market of area you have targeted for your purchase and an SRES or ABR designation after their name. The SRES designation is most important qualification to help you find assistance you need. Now that you are ready don’t wait, start making your dreams come true!
Elaine VonCannon is a REALTOR with RE/Max Capital in Williamsburg, Virginia, and she manages investment property. Elaine is also an Accredited Buyer's Representative as well as a Senior Real Estate Specialist. She has helped numerous clients invest in and make money on property in Southeastern Virginia.
