In America - How the rich avoid taxes #realestate

[TheMasterhomaster]

And this is why the rich get richer while the poor stay the same. America is one giant tax loophole for the rich.

[robatron]

“Dear I told you this 1000 times… we need MILK AND EGGS, not another condo”

“B-bb-but I did a 1031 exchange…”

[mandmhutchins]

You also cannot receive the money in any real sense. The money must be put into a holding account that you cannot access until the new property is identified. Otherwise it counts as finalizing a sale and not an exchange.

[yvrrtw]

Before doing a 1031 exchange, make sure you find a title company that is experienced with this type of transaction and you get the proper documentation. Also make sure you have a good tax accountant as the calculations on your tax depreciation schedules can get rather messy.

[geg]

Thanks for the tips man!

Ill be sure to remember them when ill have more than 5.23$ in my savings account

[berserkingbear]

The IRS worker knocking at my door vs. the shotgun pressed against the door.

[dextercochran]

Public schools don't teach kids how taxes work because it's in the government's best interest that the kids going to those schools (poor and middle class) don't know how to play the system when they get older.

[Im.k.m.aka.kalaashnikov]

If I wasn't unemployed due to market issues, not performance issues, I'd donate money to you to be able to put out more psa's! These are great!

[traceymeek]

We accountants call this the “swap till you drop” rule. You can even defer the proceeds from one rental property into 2 new properties. But be sure to talk to your accountant before doing this. It’s not the best solution for everyone.

[Firesgone]

This is famously used by house flippers. Remodel the run down house and sell it above market rate.

[unkindcloud]

Actually this is absolutely amazing advice. Thank you very much for your kindness

[Evereghalo]

This is one of the sections of the text code that keep the wealthy people wealthy

[Scar]

Instructions unclear, I now own all the property in Malaysia. The IRS is also knocking on my door.

[pavarottiaardvark]

I think this guy actually works at the marketing department of the guillotine factory.

[duskyman]

That works if you have a positive cash flow from properties but most people depend on the appreciation of the properties to actually make money on them. The cash-flow just pays the bills. If you never sell them and take a profit you never actually make any money that you can spend.... That's fine if you're just making money for your kids but if you want to actually use money to retire one day you have to pay taxes

[paulmcpheeters]

Make sure you do this CORRECTLY!!! My grandfather insured all the properties for one of his clients who deferred, but didn’t do the second step correctly. When he retired and sold his properties, he got BACK TAXED ON ALL DEFERRALS! MOST of the money from selling properties he’s paid off when to the government!!!

[mailokirmes]

Thanks for continuing to teach rich kids how to get more rich

[specialopsdave]

There should be a value/frequency cap for stuff like this, so the average joe can take advantage of this tax break, while corporate property managers have to pay up something.

[yourdadsotherfamily]

There was an interesting one I saw where some state, let’s just say, for instance Maryland had a 0% intellectual arts, property tax, i.e. a huge profitable company based in another state, could create a shell corporation in Maryland. That corporation can create a new brand image logo for the profitable company, and the profitable company can charge all of their theoretical profits that they made for what the intellectual arts property cost of the brand logo is, therefore passing all of the money onto the hand of the zero taxed shell company arm. It’s like moving money from one hand to the other.

[muggywebster]

Wish my tax guy and I knew that when I sold a multi unit house to buy another multi unit house. I got slammed in cap gains. SMH