I'd like to know about tax free exchanges

So would I. If I understand you correctly, you're referring to a "1031 Tax Deferred Property Exchange". These can be very beneficial to the 'savvy' investor. It will allow them to have more 'boot' (down payment) for the next property, thus having more instant equity or the ability to purchase a more expensive property.

First off, you will need to find an experienced real estate attorney or title company. If they refer to what you want to do as a 'Starker Exchange', run, find someone else. It was called a Starker Exchange back in the 1970's. Today it is more correctly known as a '1031 Tax Deferred Property Exchange' by the U.S. tax code. There have been a lot of changes in the regulations since it was a Starker Exchange! "Deferred' is an important word to remember, you or your estate will eventually pay all the taxes due.

There are time periods and methods of handling the sale proceeds that are critical. Done improperly and it could cost you plenty.

If you would like to know more, give me a call today.

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I want to purchase an investment property.

Great, I'd like to help you. There are a few things you need to keep in mind. First, you lose most of the tax deduction advantages of an investment property if you exceed 14 days of personal use per year. Days that you are there to make repairs, paint, cleaning, Etc. do not count towards the 14 days. Generally, the interest payments, condo fees, operating expenses, Etc. are deductible at your current tax rate. Before investing, talk with your accountant. If your strategy looks like it will work, give me a call to begin the search for the right property.

In years past, a resort area home's rental income would cover the mortgage. Today, due to the astronomical rise in property value, that is rarely true. The investment strategy should be based on the property appreciation.

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