BawldNote: I haven’t forgotten about the case studies. Murphy has sabotaged this week’s schedule. Just so ya know.
It’s our turn in the ‘tax whatever moves’ game in D.C. Increasing capital gains taxes is on the table, big time. It reminds me of when other monster tax changes affected real estate in the mid-80′s — the last quarter of the year before they became law was like a room full of kindergarteners after a Starbucks/Snickers party. Everyone wanted to make their move before they left for New Year’s Eve parties. It was crazy busy.
I suspect we may be seeing the same thing, though maybe a relatively muted version this year. Even a muted version would spell chaos for the poor lenders, escrow, and title folks. Back in ’86 they had no lives from Halloween ’till close of business New Year’s Eve.
Are you a candidate for doing something this year with your real estate investment portfolio that may have been penciled in for a year or two from now? Who might wanna think about it?
1. You have a buncha unused depreciation on the shelf gathering dust? Offsetting ‘most’ of a capital gain at 15% may be attractive, but how ’bout 20-25%? Yeah, ouch.
2. It’s my experience once Washington starts down any tax raising road, they begin adding targets to their agenda. Raising cap gains tax rates? “Hey, I gotta idea — let’s raise the depreciation recapture tax too!”
Those are the two biggies — at least for the moment. Whatever they do, it’s more likely than not it’ll go into effect 1/1/2011. If you think moving up a scheduled sale might benefit you, give me a buzz, and we’ll explore it a bit.
Whatever your reason, call me! I need a fix. I ain’t proud, as at least one call a day is required. 
My number is 619 889-7100. Have a good one.
Related posts:
- Wanna Be A Real Estate Investor? Which Is Better And Why?
- So — Which Loan Did You Choose? Real Estate Investors Wanna Know
- Transitioning From Growth To Retirement As A Real Estate Investor — End Game
- Retirement Dream a Nightmare If Real Estate Investor Hasn’t Planned Well
- Real Time Example — Why You Wanna Do Things On Purpose
About BawldGuy
Hey Jeff, fyi, I literally walked from one end of Pennsylvania Ave to the other yesterday at lunch and noted that there seemed to be a lot of quiet conversations going on by greyhaired/suited types likely to tax raisers!
I even stumbled upon the DNC and it sure looked to me like they were celebrating at the Democrats Club, could it be they know the fix is in on raising capital gains taxes?
One thing I do know is that a new tax will unleash a flurry of activity, just like the end of the tax credit for home buyers has stopped the phones from ringing in RE offices here in DC from what I hear.
In the long run though, lobbyists for the investor class will eventually pay to improve investment incentives, but who knows how long the long run will be.
We are trimming out the house and I should be finished in two weeks, I can hardly wait, film at 11!
jeffrey