A Way Out - How to Defer Capital Gains Taxes Due on Real Estate Sale - CREPN #38

When you invest in Real Estate, you know that when you sell, you have to deal with Capital Gains Taxes. Traditionally, there have been three options: Sell & pay the Capital Gains Tax Do a 1031 Exchange Do Nothing Rising Real Estate values have compressed Cap Rates, ie 3% or lower.  If a seller wants to sell while prices are high, but is unable to find a suitable option for a 1031 Exchange, there is another option: Deferred Sales Trust The Deferred Sales Trust provides the opportunity to Diversify your portfolio Take advantage of record sales prices Convert the real estate into other investment Richard Hershey with WeReduceTaxes.com explains how a Deferred Sales Trust provides an alternative for Real Estate Investors, The Deferred Sales Trust process works similar to a 1031 Exchange with the use of a neutral 3rd party intermediary. There are 3 steps to the process: 1) Buyer & Seller come to agreement on the sales price. 2) Seller transfers the property into the Deferred Sales Trust. 3) The Trust Sells the property to the Buyer. The Benefits of the Deferred Sales Trust: Ability to Sell Real Estate Investment at record highs. Diversification; opportunity to invest in alternative investment vehicles Different life style; ability to get out of the property management business If the property has been owned for a long time, it is conceivable that the property is fully depreciated, and in need of significant capital investment For your FREE copy of “A Way Out Article”for additional information on how this works. For more to to: www.WeReduceTaxes.com