If you own & are considering multifamily or retail selling income
property in the Northwestern US; and you are in a situation similar
to Joe & Jane Multi-family, you should carefully consider the
following sample tax & cost analysis & getting an alternate plan,
which might include doing a sophisticated exchange deal involving
a JimGorman456 entity. Joe & Jane bought their property in 1985 as
an investment, they now want to retire and/or cash-out. They
remodeled once and re-roofed once.
Joe and Jane really need to consider what they want to do, with or without a Realtor, Financial Adviser, CPA, or Attorney.
- Sell under a typical Purchase and Sale (P&S) for $800,000 scenario. Paying over $250,000 (One Quarter of a Million dollars in Taxes & Expenses. – No Es Bueno !!)
- Do a 1031 Exchange; with or without taking boot out, which trap all or part of their equity or cash.
- Exchange into a business relationship that will allow them to borrow; up to the cash to Seller after taxes and expenses from a purchase and sale; and become a shareholder partner in the entity exchanged into. Thus, benefiting by having spendable cash and some additional benefit from the “Tax Trapped Equity.”
Phone Jim Gorman IV at (253) 853-1408, if your interested in a no obligation discussion of your options and willing to share data on what your considering.