Solving The Real Estate Tax Problem

Solving The Real Estate Tax Problem

Posted by on Jun 3, 2020


Individuals acquire and own real estate because it is considered to be a good investment. When handled correctly, ownership of an office building can produce a steady cash flow, and a profitable return when the asset is sold.

There are, however, challenges to direct real estate ownership, one of which is taxes. Taxes, in fact, impact real estate investments, both during a hold period and following the sale. Here is why:

  • Cash flow and revenue from direct real estate ownership are taxed as regular income.
  • Profits from a real estate sale are taxed as capital gains, not just at the federal level, but in some cases, at the state level as well.
  • Real estate sales can also trigger depreciation recapture, which can be assessed when the asset’s sales price exceeds the tax basis or adjusted cost basis.

Adding to the issue is that the U.S. Tax Code continues to become more complex when it comes to real property ownership.

The Investment Property Wealth Management™ program is geared to help investors incur fewer taxes when it comes to real estate ownership. This is done through the proprietary Tax-Optimized Real Estate Program®.

Tax Reduction, Wealth Retention

The goal of the Tax-Optimized Real Estate Program® is to help investors working with IPWM™ to retain more of their principal investment by building and securing diverse real estate portfolios geared toward unique tax scenarios and risk tolerance. The goal is continued passive income streams and predictable cash flow, in conjunction with sophisticated strategies to help substantially reduce, or in some cases, eliminate, taxes altogether.

The program does this, using the following methods. 

  • Development and maintenance of a diverse portfolio to help maximize an investor’s long-term, after-cash tax flow.
  • Incorporation of tried-and-true strategies and methods to keep taxation and penalties to a minimum.
  • Acquiring and managing real estate investments that provide tax advantages and shelters
  • Using tools, such as 1031 Exchanges and Qualified Opportunity Zone Funds, to help defer potential capital gain taxes.

With assistance from the Tax-Optimized Real Estate Program®, investors end up keeping more of their wealth, while continuing to pursue long-term, after-cash flow.

Tapping into IPWM™ Knowledge

Overseeing the Tax-Optimized Real Estate Program® are IPWM™ professionals, who bring years of knowledge and skill to pinpointing the best assets that will create a continued stream of passive income, while keeping the tax burden low, both during the hold period and after the sale. Thanks to this professional experience, investors can experience more security in terms of their portfolio performance and tax issues.

The IPWM™ goal is to maintain investment wealth, while meeting investor income needs. The Tax-Optimized Real Estate Program® helps meet this goal by creating and maintaining better and stronger after-tax cash flows. As such, the principal behind the program is that it’s not about the money that the investor makes or earns through investments, but rather, how the money can be kept.

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