Mortgage rates
- Thread starter Zambo
- Start date
- Jun 11, 2014
- 16,754
- 20,381
Founding Member
This is going to protracted I’m afraid. So, I say 2013, because of where I’m at. So between 1/6 and 1/5 drop in value. But yes, that’d cut the 2017 - current bump and some extra. But every market is different.
Just like in the last crash, North Tampa was destroyed and South Tampa survived ok
- Sep 8, 2014
- 25,430
- 59,359
Thanks. I've been reading up on it and it's investment property. I'm selling one of those too.
- Sep 8, 2014
- 25,430
- 59,359
I live in Arlington, VA (just outside of DC) and this market is out of control. South Tampa is a similar market - no inventory and mediocre houses selling for similar prices as the DC market (once you get to the $850k+ range in south Tampa the houses are much nicer than they are here in DC/Arlington...but anything under $800k is a similar type house - 3br/2a 1500sf for $650k-750k range).
- Jun 11, 2014
- 16,754
- 20,381
Founding Member
Gotcha, I was more referring to how much of a drop in a down market to expect. You had areas around Ft. Myers, New Tampa, parts of Orlando where the market went to sh1t. Like over 50% drops in some areas. I'm sure there were some big cash buyers setting up retirement rentals for sure.
Also, I believe you can take up to $250k in profit off your homestead sale. $500k for married couple. Only a few stipulations apply.
Topic No. 701 Sale of Your Home | Internal Revenue Service
- Jun 11, 2014
- 14,931
- 20,246
Founding Member
- Jun 11, 2014
- 14,931
- 20,246
Founding Member
@BMF ....
As we start 2021, below are key trends, issues and points to remember regarding 1031 Exchanges.
2020 was yet again another record year for 1031 Exchanges. What’s in store for 2021?
Commercial real estate is predicted to have a mixed forecast in 2021 with certain sectors, such as industrial, experiencing robust growth while others continue to struggle. With low interest rates expected to continue and the economy recovering, many CRE sectors should normalize by mid to late 2021 if the vaccines are widely available.
Another strong year for 1031 Tax Deferred Exchange transactional activity is anticipated in 2021. Two factors will drive significant transactional activity. First, borrowing rates remain historically low. Second, the pandemic has created an unprecedented need to repurpose and renovate commercial real estate to meet post-pandemic business models.
Particularly impacted are office, retail and hotel properties, given the successes of widespread working from home and use of virtual meeting technology. Even multi-family and single family rental properties now need space for use as a home office.
Section 1031 Like-Kind Exchanges provide incentive for owners who are not in a position to make significant building modifications to transfer properties into the hands of buyers willing and able to invest fresh capital and take these properties to their highest and best use for future tenant needs.
Given the dueling pandemic and economic crises, major tax reform does not appear to be a current priority of the new Administration. Nevertheless, the need to pay for pandemic relief and new legislative initiatives could make Section 1031 a target for tax revenue seekers. Our efforts to educate our policy makers to the legitimate, economically important benefits of Section 1031 continue.
1031 trends we are anticipating:
2017 tax reform indexed the Long-Term Capital Gain rate breakpoints (whether a 15% or 20% rate) to inflation. The rates didn't change for 2021, but the income brackets did adjust. The breakpoints for 2021 are as follows: married filing jointly 501,601+ dollars and single filers 445,851+ dollars. The capital gains brackets are based on “Taxable Income” whereas the Net Investment Income Tax thresholds are based on “Adjusted Gross Income”. For more information
A 1031 Exchange transaction requires planning, expertise and support. Here’s a checklist outlining key steps in your exchange.
If your transaction closed at the end of 2020 and you are unable to find new property to identify or purchase the property that you have identified, you may still be able to defer paying taxes on your capital gains until 2021. Since you will receive your 1031 funds back in 2021, in certain circumstances, since you did not have control/possession of your funds until 2021, the IRS may allow you to pay taxes on your 2021 tax return, which are due in 2022. This is in accordance with IRC Section 453(d) and requires your accountant to file specific tax forms. Ask your accountant if you are eligible to take advantage of this “mini” tax deferral.
The IRS issued Final Regulations, TD 9935, effective Dec 2, 2020, defining real property for purposes of §1031. Read details here. Download PDF Exchange Topic here.
Summary: 1031 Exchange Disaster Relief & Rev. Proc. 2018-58
Mississippi Disaster Relief PDF
Disaster Relief Deadline Extensions
Experts Predict What The Housing Market Will Be Like In 2021
2021 commercial real estate outlook
Top 10 CRE Investment Predictions for 2021
Industrial, Data Centers Strongest Sectors in CBRE’s 2021 Forecast
IPX1031 focuses solely on 1031 Tax Deferred Like Kind Exchanges. As a national leader in 1031 Exchange services, IPX1031 has the financial assurances, security and expertise essentials to protect your funds and provide answers and guidance throughout the exchange process. When you choose IPX1031 as your Qualified Intermediary, you can be confident that your exchange will be facilitated in a professional manner and that your funds will be safe, secure, and available when needed. Contact IPX1031 to discuss your 1031 Exchange solution.
1031 Exchange and Defer? Or Sell and Pay Taxes?
Opportunities of the 1031 Exchange
How Important is Your Qualified Intermediary?
Capital Gains Estimator
IPX1031 Knowledge Center
LEARN MORE ABOUT IPX1031
Kandas Myer
Vice President Nevada
IPX1031 Exchange Services
[email protected]
(775) 721-4190 - Work
www.ipx1031.com/myer
As we start 2021, below are key trends, issues and points to remember regarding 1031 Exchanges.
2020 was yet again another record year for 1031 Exchanges. What’s in store for 2021?
Commercial real estate is predicted to have a mixed forecast in 2021 with certain sectors, such as industrial, experiencing robust growth while others continue to struggle. With low interest rates expected to continue and the economy recovering, many CRE sectors should normalize by mid to late 2021 if the vaccines are widely available.
Another strong year for 1031 Tax Deferred Exchange transactional activity is anticipated in 2021. Two factors will drive significant transactional activity. First, borrowing rates remain historically low. Second, the pandemic has created an unprecedented need to repurpose and renovate commercial real estate to meet post-pandemic business models.
Particularly impacted are office, retail and hotel properties, given the successes of widespread working from home and use of virtual meeting technology. Even multi-family and single family rental properties now need space for use as a home office.
Section 1031 Like-Kind Exchanges provide incentive for owners who are not in a position to make significant building modifications to transfer properties into the hands of buyers willing and able to invest fresh capital and take these properties to their highest and best use for future tenant needs.
Given the dueling pandemic and economic crises, major tax reform does not appear to be a current priority of the new Administration. Nevertheless, the need to pay for pandemic relief and new legislative initiatives could make Section 1031 a target for tax revenue seekers. Our efforts to educate our policy makers to the legitimate, economically important benefits of Section 1031 continue.
1031 trends we are anticipating:
- Continued 1031 growth in industrial, self-storage, R&D, medical/office, and multi-family sectors.
- Individual exchangers will continue to sell investment property and purchase Replacement Property in warmer climates or other locations with high vacation rental income.
- Continued increase of Replacement Property purchases of qualifying vacation home rental properties.
- An uptick in Build-to-Suit Exchanges where clients make improvements to their Replacement Properties.
- Reverse Exchange momentum will continue to grow with a shortage of Replacement Property inventory and a competitive buyers market.
- Retirement/Estate planning with Exchanged property will drive much investor 1031 transactional activity.
- Especially while the interest rates on financing are low and favorable, more taxpayers maximizing their 1031 tax deferral potential to grow their portfolios by selling while prices stay high, preserving their equity by using all proceeds to exchange into the purchase of larger or multiple Replacement Properties.
2017 tax reform indexed the Long-Term Capital Gain rate breakpoints (whether a 15% or 20% rate) to inflation. The rates didn't change for 2021, but the income brackets did adjust. The breakpoints for 2021 are as follows: married filing jointly 501,601+ dollars and single filers 445,851+ dollars. The capital gains brackets are based on “Taxable Income” whereas the Net Investment Income Tax thresholds are based on “Adjusted Gross Income”. For more information
A 1031 Exchange transaction requires planning, expertise and support. Here’s a checklist outlining key steps in your exchange.
- Choose your 1031 Qualified Intermediary (QI)
- Consult with your tax professionals
- Include Cooperation Clause language in your purchase and sale agreement
- QI prepares your exchange documents
- Start searching for Replacement Property
- Sign all documents QI prepares
- Sell your Relinquished Property
- Identify your Replacement Property
- Enter into contract on Replacement Property
- Contact QI once Replacement Property escrow is opened
- Close on Replacement Property
- QI transfers funds to complete your purchase
- Your exchange is complete
If your transaction closed at the end of 2020 and you are unable to find new property to identify or purchase the property that you have identified, you may still be able to defer paying taxes on your capital gains until 2021. Since you will receive your 1031 funds back in 2021, in certain circumstances, since you did not have control/possession of your funds until 2021, the IRS may allow you to pay taxes on your 2021 tax return, which are due in 2022. This is in accordance with IRC Section 453(d) and requires your accountant to file specific tax forms. Ask your accountant if you are eligible to take advantage of this “mini” tax deferral.
The IRS issued Final Regulations, TD 9935, effective Dec 2, 2020, defining real property for purposes of §1031. Read details here. Download PDF Exchange Topic here.
Summary: 1031 Exchange Disaster Relief & Rev. Proc. 2018-58
Mississippi Disaster Relief PDF
Disaster Relief Deadline Extensions
Experts Predict What The Housing Market Will Be Like In 2021
2021 commercial real estate outlook
Top 10 CRE Investment Predictions for 2021
Industrial, Data Centers Strongest Sectors in CBRE’s 2021 Forecast
IPX1031 focuses solely on 1031 Tax Deferred Like Kind Exchanges. As a national leader in 1031 Exchange services, IPX1031 has the financial assurances, security and expertise essentials to protect your funds and provide answers and guidance throughout the exchange process. When you choose IPX1031 as your Qualified Intermediary, you can be confident that your exchange will be facilitated in a professional manner and that your funds will be safe, secure, and available when needed. Contact IPX1031 to discuss your 1031 Exchange solution.
1031 Exchange and Defer? Or Sell and Pay Taxes?
Opportunities of the 1031 Exchange
How Important is Your Qualified Intermediary?
Capital Gains Estimator
IPX1031 Knowledge Center
LEARN MORE ABOUT IPX1031
Kandas Myer
Vice President Nevada
IPX1031 Exchange Services
[email protected]
(775) 721-4190 - Work
www.ipx1031.com/myer
Last edited:
- Sep 4, 2014
- 21,354
- 79,772
- Jun 11, 2014
- 14,931
- 20,246
Founding Member
I got rid of her. Not a warm and fuzzy face. It was just a C/P of an email from yesterday.
- Jun 11, 2014
- 14,931
- 20,246
Founding Member
- Sep 4, 2014
- 21,354
- 79,772
@soflagator I see you grabbed that mug.
If I don’t sleep tonight, no one sleeps tonight.
- Jun 11, 2014
- 14,931
- 20,246
Founding Member
- Jul 29, 2014
- 22,181
- 23,446
Just had an interesting talk with the manager of mortgage lending for our largest client(120-140 closings a month). She showed us projected numbers for 2021 and their projections are strong until June...then they fall off to levels we haven't seen since 2014-2015 for the rest of the year...prepare accordingly were her strong words of advice.
So much for hiring 2 more people....
So much for hiring 2 more people....
- Jun 2, 2016
- 6,807
- 8,007
So does that mean might want to hold off on buying until June?
- Jul 29, 2014
- 22,181
- 23,446
I think I would as prices likely will take a few months to fall. Right now is still a sellers market and will likely remain that way until summer at least.
- Jun 2, 2016
- 6,807
- 8,007
Thanks!
We're moving to the KC area at some point this year. I guess we'll see.
- Jul 29, 2014
- 22,181
- 23,446
Start researching the market now but I wouldn't touch anything until August or later. Maybe you can get a short term lease(6-12months) when you move there?
- Aug 11, 2015
- 8,314
- 15,952
Only on gains over $250k or $500k if you’re married.
Tax Aspects of Home Ownership: Selling a Home - TurboTax Tax Tips & Videos
- Sep 8, 2014
- 25,430
- 59,359
Thanks! I haven't sold my primary home in 10+ years (I did sell a rental property in 2018).
