real estate

Can We Defer A Big Tax Bill With A 1031 Exchange?

06.30.2014
defer big tax bill 1031 exchange rental property primary residence

As our regular readers know, we just sold our 4-plex and a rental home. The good news is we made a profit on both these transactions, but the bad news is we’re going to have a hefty tax bill next April. The rental home in particular has quite a bit of gain because we had it since 2000. It was our primary residence until 2007 when we moved to our current condo. One way to defer paying the tax is to use the IRS 1031 exchange and I thought we’d go over it in detail today. Rental Home History Here […]

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Should your home be a big part of your net worth?

05.28.2014
Should your home be a big part of your net worth?

A few days ago, I got a question from one of our readers. “My biggest question, as I’m retired in my 40′s but my husband still works, is how much can I spend on a house. What % of my assets is wise to invest in a house that we hope to live in . . . maybe forever.“ That’s a great question! Obviously, there is no exact answer to this question because every situation is different. In your 20′s, you probably rented or just purchased your first home. At this point, the home equity/net worth ratio is probably quite […]

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Selling a rental can have big impact on your tax liability

04.14.2014
Selling a rental can have big impact on your tax liability

Sorry to write about the rentals again today. It’s just consuming all my attention and I’m having a hard time thinking about anything else. We decided to put our rental home and 4-plex up for sale to take advantage of the HOT real estate market. I know we’d have to pay tax on the gain, but I didn’t realize just how much tax we’d have to pay. A Big Tax Bill I just finished our tax return with 3 days to spare. Whew! This year we don’t have to pay much tax at all because we came in under the […]

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10 reasons why I’m not cut out to be a landlord

04.07.2014
10 reasons why I’m not cut out to be a landlord

Whew! It’s been kind of crazy around here lately. I decided to put our rental home and 4-plex up for sale and the whole process has been a bit hectic these past few weeks. Our tenants moved out of our rental home on Tuesday and since then, I have been fixing what I can. Next week, the contractors will take over and get it ready for sale. FYI, I manage the rental home myself and I have a property manager for the 4-plex. Why am I selling our rentals now? Things are just starting to turn the corner on the […]

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