Section 121 Real Estate Investing System: Be An Automatic Millionaire - Couverture souple

Lantrip, Michael

Couverture souple

ISBN 10 : 194562714X ISBN 13 : 9781945627149

Editeur : Anderson Logan LLC, 2020

Synopsis

There is exactly one asset you can sell without paying tax on the profit. You are probably living in it.

Section 121 of the Internal Revenue Code lets you sell your primary residence and exclude the gain — up to $250,000 if you are single, and up to $500,000 if you are married filing jointly — as long as you owned it and lived in it for two of the five years before the sale.

Most people use that once or twice in a lifetime. This book turns it into a system.

Here is the system.

Buy a house you want to live in. Live in it as your primary residence for two years. Then move into another primary residence. But instead of selling the first one, keep it and rent it for three years.

Two years later, do it again. And again.

Every house you buy becomes a rental. And because you have five years to accumulate the two qualifying years, you can rent each one for three more years and still sell it with the entire five years of gain excluded from tax.

You will owe Depreciation Recapture on the three rental years. That is all. And that is mostly just returning deductions you already took.
How does this build your Investment Portfolio?

Ten properties in twenty years. Fifteen in thirty. Twenty in forty.

Without ever buying a rental property. Without competing against other investors for deals. Without a single distressed purchase, auction, or bidding war.

You are buying houses you would want to live in, in neighborhoods you would want to live in, using the best financing available to any borrower — owner-occupant financing, which is cheaper and easier than anything an investor can get.

Yes, it means moving every two years.

The national average for homeowners is 3.5 years. You would be doing it a little sooner than most people already do, in exchange for a portfolio.

And there is a third move most people have never heard of.

You can keep the property permanently as an investment — and still take the tax-free gain — by selling it to a corporation you own. The book explains exactly how that transaction works, why an S Corporation and not a C Corporation, and where the line is.

What is inside:

• How to choose the first residence — financing, type, location, neighborhood, region, size, and the vacant land that can come with it.
• Adjacent vacant land, and why it qualifies even if you sell it separately.
• Maintaining the residence, Section 1250 and Section 1245 property, and how Depreciation Recapture actually works.
• Finding the tenant, and why your first ones are closer than you think.
• Buying the next residence while you still own the last one.
• The first sale — to a third party, or to your own S Corporation.
• Eighteen years worked out in full, in three six-year blocks, with capital gains, appreciation, income, and cash flow at every step.
• The text of Section 121 and Treasury Regulation 1.121-1, so you can read the law yourself.

Written by a lifelong real estate investor.

Michael Lantrip is licensed to practice law in Texas, Virginia, North Carolina, and the District of Columbia, and before the United States Tax Court. He is a former IRS Tax Examiner and a former Tax Accountant for a Big 8 accounting firm. He owned his own Title Insurance Company, and has handled over 2,000 real estate closings.

He has written ten books on real estate investing and tax strategy.

Your home is your first rental property. Start now.

Détails de l'édition

• Éditeur: Anderson Logan LLC
• Date d'édition: 2020
• Langue: anglais
• ISBN 10: 194562714X
• ISBN 13: 9781945627149
• Reliure: Broché
• Nombre de pages: 183
• Coordonnées du fabricant: Manufactured by Amazon on behalf of the author; https://www.amazon.fr/hz/contact-us; ; c/o Amazon Media EU S.à.r.l., 38 Avenue John F. Kennedy; Luxembourg; L-1855; Luxembourg