Is Crypto The New Real Estate & Should You Invest in Cryptocurrency Now? | Kabinet
Is Cryptocurrency the new real estate?Read More
Author: Terry, CPA @ Kabinet
Throughout the Internal Revenue Code there are major benefits for real estate investing and homeownership. They are there for everyone, not just Donald Trump and if you use them, they will make your portfolio so much more lucrative.
Today, we will look at what is known as Code Section 1031. The ramifications of this tax law are so great it is hard to describe the incredibleness of the tax $ that are saved by real estate investors through 1031 exchanges.
This benefit allows a real estate investor to purchase a new property to replace their old one, without the paying of any taxes on the profit made. If you don’t see the wonder of this then you are not thinking!
A real estate investor who is staying in the business should almost always use this incredible technique to pay no taxes on their profits. The investor retains the entire sales price to reinvest instead of giving the IRS 20% off the top. Thus, if you had a million dollar profit, you can reinvest the full million as opposed to $ 800,000, is that not mind boggling?
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Terry is the CFO of Kabinet and a Certified Public Accountant with more than three decades working in the field and an observer of human nature. This as a series of personal experiences which led him to Kabinet and why he considers it a tremendous product that has a most useful function for all who own real estate.