You bought a multifamily property. You’re collecting rent, building equity, and watching your tenants pay down the loan every month. Good, it is working! But here’s a question most investors never stop to ask: are you actually using the single biggest tax benefit your real estate hands you every year? Because the truth is, the depreciation on your tax return is probably stuck in slow motion — the...
You just sold a multifamily property — or you’re about to — and the closing statement looks great until your CPA brings up the tax bill. Between federal capital gains, depreciation recapture, the 3.8% net investment income tax, and your state’s cut, you can hand back a brutal slice of your gain. Here’s the move that lets you keep all of it working instead: the 1031 exchange. Done right, you roll...