IPX1031 Newsletter – February 2013

1031 Exchanges are Even More Valuable Now!

Earlier this year many articles were written listing all of the tax changes that occurred at the beginning of 2013. That is not the purpose of this article. Instead we will review those changes that directly impact investment properties and discuss how 1031 exchanges are even more valuable to investors than they were before.

On January 1, 2013 two new tax laws which adversely affect many investors took effect: a new tax and an increase in the tax rate on capital gains. The new tax was part of The Affordable Healthcare Act. It imposes a 3.8% tax on certain investment income (including capital gains) on taxpayers whose Adjusted Gross Income exceeds $200,000 for single filers and $250,000 for married couples filing jointly. In addition, The American Taxpayer Relief Act raised the top long-term capital gain tax rate from 15% to 20% for some taxpayers. The 20% top rate applies to the extent a taxpayer’s Taxable Income exceeds $400,000 for single individuals and $450,000 for married couples filing jointly. It should be noted that these two taxes apply to different levels of income. Taxable Income is a smaller amount and results after a taxpayer’s deductions and exemptions are subtracted from the Adjusted Gross Income. Accordingly, the Healthcare tax will impact more taxpayers than if it applied to “Taxable Income”.

To illustrate the application of these taxes, let’s look at an example. Assume that Ted Taxpayer (married and filing jointly) has no other income other than the proceeds from a commercial property he plans to sell in 2013 for $3,000,000. He bought the property 10 years earlier for $1,500,000, put $200,000 of capital improvements into the building and took depreciation deductions totaling $600,000.

Click here to read more... 

Stephen D. Decker
Vice President
Business Development

(619) 246-8187 Cell

Assets That Increase Your Net Worth Your net worth calculation provides a financial report card for how you are doing at this point in time.

Farmland prices expected to keep rising in 2013 Kansas farmland, like agricultural ground across the nation, is expected to continue to rise in value in 2013,

Join us for a complimentary beginners or advanced 1031 webinar...
Click here for info.

Click to view this email in a browser

If you no longer wish to receive these emails, please reply to this message with "Unsubscribe" in the subject line or simply click on the following link: Unsubscribe

701 Palomar Airport Road, Suite 260
Carlsbad, CA 92011

Read the VerticalResponse marketing policy.

Try Email Marketing with VerticalResponse!