Buying – Equity from your old house to the new one – To take advantage of today’s market, homeowners often move into a new home that better meets their current needs (moving to a larger home or downsizing as the kids move out.
If you are one of the many who are unsure of how much equity you have built in your home, don’t let that be the reason you fail to move on to your dream home Let’s get together to evaluate your situation!
We can start by getting an analysis of what the MLS calculates your home value is. It’s not 100% accurate but it’s a good start.
A 1031 Exchange can also come into play. That’s when you move some or all of your equity into investment properties. You should consult your tax advisor after we assess the value of the house you are selling.
Pros of a 1031 Exchange
Deferral of taxes.
Leverage and increase cash flow for reinvestment.
Relief from management.
Wealth and asset accumulation.
Cons of a 1031 Exchange
Multiple procedures, rules, and regulations to follow. We know the right accommodators to use. Ask.
Difficulty in meeting IRS rules and regulations.
The reduced basis on property acquired.
Losses cannot be recognized.
Future increases in tax rates.
Only tax-deferred, not tax-free.