Author Topic: Investments/Partnerships  (Read 17100 times)

Offline henche

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Re: Investments/Partnerships
« Reply #60 on: February 26, 2015, 05:53:06 PM »
whats a 1031?

Let's say you earn a 10% annual return on your money, and you pay taxes on it every year at 20%.  You are have an 8% IRR.

Let's say you earn a 10% annual return on your money, and you pay taxes on it at the end of 20 years at 20%.  You have a much higher IRR. I don't know how much.

So if you can reinvest your money in new investments without triggering your obligation to pay tax on the money you've made so far, that is more money for you.

If you sell a property, you pay tax on the gain.  A 1031 exchange lets you trade properties without paying tax.  So you can get out of your old investment where you already added your value and money and get into a new one without paying tax on the money you made.

Offline solls108

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Re: Investments/Partnerships
« Reply #61 on: February 26, 2015, 07:49:52 PM »
Nailed it.
Let's say you earn a 10% annual return on your money, and you pay taxes on it every year at 20%.  You are have an 8% IRR.

Let's say you earn a 10% annual return on your money, and you pay taxes on it at the end of 20 years at 20%.  You have a much higher IRR. I don't know how much.

So if you can reinvest your money in new investments without triggering your obligation to pay tax on the money you've made so far, that is more money for you.

If you sell a property, you pay tax on the gain.  A 1031 exchange lets you trade properties without paying tax.  So you can get out of your old investment where you already added your value and money and get into a new one without paying tax on the money you made.

Offline 12HRS

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Re: Investments/Partnerships
« Reply #62 on: February 26, 2015, 10:34:28 PM »
Let's say you earn a 10% annual return on your money, and you pay taxes on it every year at 20%.  You are have an 8% IRR.

Let's say you earn a 10% annual return on your money, and you pay taxes on it at the end of 20 years at 20%.  You have a much higher IRR. I don't know how much.

So if you can reinvest your money in new investments without triggering your obligation to pay tax on the money you've made so far, that is more money for you.

If you sell a property, you pay tax on the gain.  A 1031 exchange lets you trade properties without paying tax.  So you can get out of your old investment where you already added your value and money and get into a new one without paying tax on the money you made.

I assume you would keep your cost basis @ the original investment price?

Offline henche

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Re: Investments/Partnerships
« Reply #63 on: February 26, 2015, 10:42:01 PM »
I assume you would keep your cost basis @ the original investment price?

Right, you keep your adjusted basis at the current adjusted basis.

Offline AsherO

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Re: Investments/Partnerships
« Reply #64 on: February 27, 2015, 07:52:45 AM »
Right, you keep your adjusted basis at the current adjusted basis.

Do you don't avoid the tax, you just defer it.

Offline henche

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Re: Investments/Partnerships
« Reply #65 on: February 27, 2015, 09:39:31 AM »
Do you don't avoid the tax, you just defer it.

Yes, effectively giving you an interest free loan from the US govt that also doesn't need to be paid if you lose it. 

It's a good deal.  Much better than most of the deals being peddled on this thread, no doubt.

Offline PlatinumGuy

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Re: Investments/Partnerships
« Reply #66 on: March 01, 2015, 02:05:45 AM »
Don't forget basis is adjusted at death so heirs don't have cap gains liability.
״וזה כלל גדול: שישנא אדם כל דבר שקר. וכל מה שיוסיף שנאה לדרכי השקר יוסיף אהבה לתורה.״ - אורחות צדיקים

Offline talmid chuchem

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Re: Investments/Partnerships
« Reply #67 on: March 01, 2015, 03:13:48 AM »
It's getting late (1031's have a time limit), if you have any good deals to offer for a $150MM + 1031, please PM me

Offline solls108

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Re: Investments/Partnerships
« Reply #68 on: March 16, 2015, 06:20:19 PM »
I want to start a pot hole company. Anyone have an experience with this. Please PM me.

Offline Tankchucker

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Re: Investments/Partnerships
« Reply #69 on: March 16, 2015, 06:56:01 PM »
I want to start a pot hole company. Anyone have an experience with this. Please PM me.
Before I call you a troll or stupid can you explain what a pot hole company is?

Offline rots5

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Re: Investments/Partnerships
« Reply #70 on: March 16, 2015, 07:32:24 PM »
Before I call you a troll or stupid can you explain what a pot hole company is?
coming from the guy with 97 posts.... its a joke settle down, no need to be all pissy here...
If you have any questions please search and then ask. PM me for detailed help.

Offline Tankchucker

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Re: Investments/Partnerships
« Reply #71 on: March 16, 2015, 07:40:20 PM »
coming from the guy with 97 posts.... its a joke settle down, no need to be all pissy here...
Shhh I'm not being pissy I'm just trying to raise my post count

Offline good sam

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Re: Investments/Partnerships
« Reply #72 on: March 16, 2015, 08:33:58 PM »
It's getting late (1031's have a time limit), if you have any good deals to offer for a $150MM + 1031, please PM me
I assume you're a troll but just for the record, if you haven't identified a property yet, you can't do a 1031 save for with tax fraud.
If you don't care why would you comment?
HT: DMYD

Offline solls108

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Re: Investments/Partnerships
« Reply #73 on: March 31, 2015, 07:56:20 PM »
Anyone looking for hard money loans? :)

Offline talmid chuchem

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Re: Investments/Partnerships
« Reply #74 on: April 01, 2015, 03:07:56 AM »
I assume you're a troll but just for the record, if you haven't identified a property yet, you can't do a 1031 save for with tax fraud.
B"h identified, & in contact already.

I don't exactly understand what you mean about tax fraud