Comments on: #1 Formula For Knowin’ When To Execute A Tax Deferred (1031) Exchange http://bawldguy.com/1-formula-for-knowin-when-to-execute-tax-deferred-1031-exchange/?utm_source=rss&utm_medium=rss&utm_campaign=1-formula-for-knowin-when-to-execute-tax-deferred-1031-exchange Real Estate Investing Through Purposeful Planning Mon, 14 May 2012 17:45:27 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: BawldGuy http://bawldguy.com/1-formula-for-knowin-when-to-execute-tax-deferred-1031-exchange/#comment-2979 BawldGuy Fri, 22 Aug 2008 04:09:04 +0000 http://www.bawldguy.com/1-formula-for-knowin-when-to-execute-tax-deferred-1031-exchange/#comment-2979 David -- Last year I was called in just in time to halt a 1031 for a referral who had mountains of capital gains offsetting depreciation on the shelf. He ended up paying single digit % taxes, and was able to start with a brand new basis. So far, I'm viewing this election as an almost eery repeat of 1980. Investors were not only in a bad way due to wicked high interest rates, 13-17%, but the correction made that factor moot. It was brutal. It's all about perception, and BHO, rightly or wrongly is perceived as wanting to tax both business and investment. When that perception is acted upon by investors, they tend to go for cash, or simply hold still. The only reason they'd execute a 1031 would be to increase either cash flow and/or tax shelter. What some do, the real believers, is to sell, pay the taxes, and horde the cash. They do this in anticipation of bad economic times nationally. The last time I saw this was when Clinton was running for his first term. The extreme fears turned out to be baseless for a variety of reasons. The possible difference this time around is the possibility a White House wanting to raise taxes on business and investors, with a willing Congress. I don't see a rash of 1031's if BHO is elected. There will be, however, increased market activity. Unfortunately, as I said earlier, it'll be perception that rules the day. David — Last year I was called in just in time to halt a 1031 for a referral who had mountains of capital gains offsetting depreciation on the shelf. He ended up paying single digit % taxes, and was able to start with a brand new basis.

So far, I’m viewing this election as an almost eery repeat of 1980. Investors were not only in a bad way due to wicked high interest rates, 13-17%, but the correction made that factor moot. It was brutal.

It’s all about perception, and BHO, rightly or wrongly is perceived as wanting to tax both business and investment. When that perception is acted upon by investors, they tend to go for cash, or simply hold still. The only reason they’d execute a 1031 would be to increase either cash flow and/or tax shelter.

What some do, the real believers, is to sell, pay the taxes, and horde the cash. They do this in anticipation of bad economic times nationally. The last time I saw this was when Clinton was running for his first term.

The extreme fears turned out to be baseless for a variety of reasons. The possible difference this time around is the possibility a White House wanting to raise taxes on business and investors, with a willing Congress.

I don’t see a rash of 1031′s if BHO is elected. There will be, however, increased market activity. Unfortunately, as I said earlier, it’ll be perception that rules the day.

]]> By: David Stejkowski http://bawldguy.com/1-formula-for-knowin-when-to-execute-tax-deferred-1031-exchange/#comment-2978 David Stejkowski Fri, 22 Aug 2008 03:33:33 +0000 http://www.bawldguy.com/1-formula-for-knowin-when-to-execute-tax-deferred-1031-exchange/#comment-2978 I don't get the 1031 mystique. Unless you do it wrong, or you don't read the rules or you have a lousy QI or you do a reverse 1031, you oughta be able to keep the deal in the no-brainer mode. And as usual, Jeff, you're dead solid on. And believe you me: I've seen some 1031s that should have been done but weren't for the craziest of reasons, and I've seen 1031s that made absolutely no business sense whatsoever. P.S. You think we're gonna see -- rightly or wrongly -- a boatload of 1031s in 2009 if BHO is elected? I don’t get the 1031 mystique. Unless you do it wrong, or you don’t read the rules or you have a lousy QI or you do a reverse 1031, you oughta be able to keep the deal in the no-brainer mode. And as usual, Jeff, you’re dead solid on.

And believe you me: I’ve seen some 1031s that should have been done but weren’t for the craziest of reasons, and I’ve seen 1031s that made absolutely no business sense whatsoever.

P.S. You think we’re gonna see — rightly or wrongly — a boatload of 1031s in 2009 if BHO is elected?

]]> By: BawldGuy http://bawldguy.com/1-formula-for-knowin-when-to-execute-tax-deferred-1031-exchange/#comment-2977 BawldGuy Fri, 22 Aug 2008 03:02:40 +0000 http://www.bawldguy.com/1-formula-for-knowin-when-to-execute-tax-deferred-1031-exchange/#comment-2977 Much appreciated Big Guy. Much appreciated Big Guy.

]]> By: The Mortgage Cicerone http://bawldguy.com/1-formula-for-knowin-when-to-execute-tax-deferred-1031-exchange/#comment-2976 The Mortgage Cicerone Fri, 22 Aug 2008 02:56:48 +0000 http://www.bawldguy.com/1-formula-for-knowin-when-to-execute-tax-deferred-1031-exchange/#comment-2976 Thanks for the vote of confidence, however in all seriousness, your site and advice is ROCK SOLID!!!!!! Thanks for the vote of confidence, however in all seriousness, your site and advice is ROCK SOLID!!!!!!

]]> By: BawldGuy http://bawldguy.com/1-formula-for-knowin-when-to-execute-tax-deferred-1031-exchange/#comment-2975 BawldGuy Thu, 21 Aug 2008 17:04:58 +0000 http://www.bawldguy.com/1-formula-for-knowin-when-to-execute-tax-deferred-1031-exchange/#comment-2975 Thanks Tony -- There's always been either a cloak of mystery surrounding 1031's, or worse, some think it's been sent from the Lord as the be all end all. Readers: Wanna find out pretty much anything and everything 'bout mortgages and the industry? Click on Mortgage Cicerone and tell them I sent you. :) Thanks Tony — There’s always been either a cloak of mystery surrounding 1031′s, or worse, some think it’s been sent from the Lord as the be all end all.

Readers: Wanna find out pretty much anything and everything ’bout mortgages and the industry? Click on Mortgage Cicerone and tell them I sent you. :)

]]> By: The Mortgage Cicerone http://bawldguy.com/1-formula-for-knowin-when-to-execute-tax-deferred-1031-exchange/#comment-2974 The Mortgage Cicerone Thu, 21 Aug 2008 12:05:41 +0000 http://www.bawldguy.com/1-formula-for-knowin-when-to-execute-tax-deferred-1031-exchange/#comment-2974 What an obvious, yet not so obvious truth. Sometimes common sense is apparent to those with wisdom, however too many get caught up in the details and can not see the forest through the trees. Love this subtle yet powerful post!!! What an obvious, yet not so obvious truth. Sometimes common sense is apparent to those with wisdom, however too many get caught up in the details and can not see the forest through the trees. Love this subtle yet powerful post!!!

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