Woodland Hills, CA (PRWEB) February 10, 2015
“Once again, real estate investors find themselves in the cross hairs of Washington budget planning,” comments Kevin M. Levine, Executive Vice President of Peak 1031 Exchange Inc. In the wake of the recent proposal by President Obama to increase the top capital gains tax rate to 28% in an attempt to generate much needed revenue for the budget, the 1031 Exchange firm has increased its efforts to make investors of all classes aware of the consequences of this proposal. Levine and his team wish to ensure real estate investors are fully aware of the potential tax benefits associated with investing profits from the sale of property into other similar collateralized vehicles to defer tax liabilities down the road.
“At some point the other shoe is going to drop, much to the dismay of investors enjoying healthy returns from the sale and purchase of real estate,” Levine continues. “At some critical juncture, Congressional and White House proposals tinkering with capital gains taxes will gain momentum.” Levine is referring not only to the recent 28% capital gains proposal in President Obama’s address on January 20th, but also to budget proposals capping investments that qualify for 1031 Exchange status to $1 million along with calls to lengthen depreciation schedules. Levine recommends that investors act now to implement tax strategies to leverage advantages of the tax code before “proposals become law” and restrictions make IRC Section 1031 exemptions less attractive.
This portion of the tax code allows an investor who holds property for investment purposes, or for use in a trade or business, tax deferral under the following capital gains scenarios — federal capital gain, federal depreciation recapture, net investment income, and state capital gain — by exchanging for qualifying like-kind property within a 180 day period. The benefits allowed under the IRC Section 1031 help investors realize much healthier returns through the mitigation of tax liability associated with profits from proceeds of sales transactions. While Levine and his team tout expertise as a qualified intermediary specializing in real estate transactions, they also remind their clients that tax deferred benefits extend to like-kind exchanges for property used as part of the business. “Tax benefits catering to the investor class have been and will always represent low-hanging fruit in Washington budget rhetoric,” states Levine. “We will continue to assert that real estate, and the investors that drive the industry, must retain the advantages tax deferred strategies 1031 Exchanges offer as an incentive for continued participation as our economy shows signs of continued growth.”
Peak 1031 Exchange, Inc. (https://peakexchange.wpengine.com) is one of the entities in the Peak Corporate Network, headquartered in Woodland Hills, California. In addition to 1031 Exchange services, the Peak Corporate Network group of companies provide loss mitigation and workout services, residential and commercial real estate brokerage services, escrow services, real estate financing, short sale services, insurance services, foreclosure services and loan servicing. For more information, visit http://www.peakcorp.com.
The Peak Corporate Network (http://www.peakcorp.com) is a brand that represents a group of related separate legal entities, each providing its unique set of real estate services.