Or liquidate a stock portfolio without detailed tax planning? Of course not. Yet, when it comes to investment properties, most investors don’t apply sophisticated wealth strategies in pursuit of after-tax, risk-adjusted returns.
When seeking the unique tax benefits and risk-adjusted returns available with investment properties, a complex set of interdependencies must be weighted and factored. If not, all of those benefits can be lost.
Your real estate broker isn’t a tax expert. Your advisor, accountant, or attorney? Not real estate investors. Without a trusted partner, it’s easy to make decisions that destroy returns and undermine your plans for the future.
As you approach retirement or other life milestones, properties must be sold or exchanged to meet changing income needs, risk preferences, and investment goals. That’s when you’re most likely to pay a painful price.
Unfortunately, the vast majority of those preparing to sell or exchange investment properties don’t capture the full benefits available with 1031 exchanges.
* Hypothetical example, for illustrative purposes only.
Many investment property owners aren’t aware of 1031 exchanges and the tremendous tax benefits and superior returns they can support over time.
Most investors who complete 1031 exchanges don’t take full advantage of their power, limiting their tax benefits, creating unnecessary risk, and undermining risk-adjusted returns.
Without a sophisticated wealth management strategy for your investment properties, you risk sacrificing a large portion of the property wealth you’ve worked so hard to accumulate.