in a like-kind exchange.
Question: Can I use other assets like stocks and bonds in a Section 1031 exchange? Answer: No. When the Tax Cuts and Jobs Act was passed in December 2017, like-kind exchange tax treatment became generally limited to real property exchanges only. Question: How does tax law affect real estate investment strategy? Answer: Tax law encourages a buy-and-hold real estate investment strategy with lower long-term capital gains rates, depreciation expense, and investor-friendly tax deductions for interest and operating expenses. Question: Can capital losses in one year be used to offset gains in future years? Answer: Yes. The IRS limits capital loss deductions (the net difference between total gains and losses) to $3,000 per year. However, capital loss amounts in excess of $3,000 can be carried forward to future years. Real estate investors who don’t plan ahead run the very real risk of losing a big percentage of their profits to capital gains tax owed when a property is sold. With the right strategies, single- family investors can avoid, reduce, and defer paying capital gains tax on rental property: Of course, selling a property doesn’t mean getting out of the real estate investing business completely. In fact, as we have said, many investors scale-up their real estate holdings by using a 1031 exchange to trade a one-rental property for a larger portfolio of professionally managed multi-family homes. 6. "The Silver Tsunami Fortune in Residential Assisted Living Homes. Take a look at Chapter 7 of this book.
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