When seeking the unique tax benefits and potential risk-adjusted returns available with investment properties, a complex set of interdependencies should be weighted and factored*.
* Costs associated with a real estate transaction may impact investor’s returns and may outweigh the tax benefits. All real estate investments have the potential to lose value during the life of the investment.
Your real estate broker probably isn’t a tax expert. Your advisor, accountant, or attorney? May not be real estate investors. Realized may be able to bridge that gap.
As you approach retirement or other life milestones, properties may need to be sold or exchanged to meet changing income needs, risk preferences, and investment goals.
*The actual amount and timing of distributions paid by programs is not guaranteed and may vary. There is no guarantee that investors will receive distributions or a return of their capital.
Some investment property owners aren’t aware of 1031 exchanges and the tax benefits and potential returns they can support over time.
Some investors who complete 1031 exchanges don’t always take full advantage of their power, which could limit their potential tax benefits, creating potential unintended risk, and may affect potential returns.
A wealth management strategy for your investment properties could help protect the wealth you’ve worked so hard to accumulate.