How To Regain Control Of Your Real Estate Investment Choices While Avoiding Capital Gains
For the past years, investors of real estate have been very profitable. But the market is changing and it may be time for many investors to be on the lookout for a new strategy. For those who own rentals, the greatest trend was to purchase a rental property and see it in order to appreciate it and then buy another rental property through a 1031 tax-deferred exchange system to eliminate the existing capital gains tax. However there are not as many solid investment properties accessible in the real estate market today. The increase in the cost are real estate has not remained in the balance along with the rental income. If you are thinking about selling your investment properties, you probably are very much concerned about the large tax bill you will face at the end of the day.
Low rent income, demanding the leases and a considerable amount of equity at risk have caused almost all the owners of the real estate to consider selling their real estate. But there are countless investors who feel they are "stuck" with property right now that they'd rather sell. Many are hesitant to reinvest in a new 1031 exchange property because of low rental rates, but are unwilling to cash out on the property out of fear of paying considerable capital gains taxes. The news today is that for many owners and investors from this website, it is important to understand that a Private Annuity Trust offers a way to defer paying capital gains taxes, create a lifetime income and protect your assets as well.
With the Private Annuity Trust, real estate investors from 1031gateway.com have a safe and legal way to exit from the labor of property management, the aggravations in dealing with most of the tenants, and the anxiety of wondering how property values will fare in the present real estate market.Instead investors can avoid making hasty decisions, feel out the market, and decide whether or not they even want to stay in real estate.
When the property is ultimately sold, the Trust can begin providing a lifetime stream of income, with taxes deferred over the seller's lifetime. The Trust assets are protected from creditors and lawsuits, and the assets in the Trust can eventually pass to the seller's beneficiaries without worry about the current 46% estate tax rate. They just want to sell some of their assets and place their money into a more diversified, completely protected, lower maintenance investment vehicle with predictable cash flow.
The current Internal Revenue codes and strategic implementation of Private Annuity Trusts make avoiding this predicament a reality. Perhaps it’s time to take back the control you deserve over your real estate investment career and begin investing on your own terms. Get some more information at https://en.wikipedia.org/wiki/Investment.