The end of the year is a busy time in the personal and professional lives of real estate investors for a number of reasons.
In addition to calculating income and evaluating tax liability, there are a number of other considerations that will help you thrive when looking to invest.
The following will help you take a look at your current portfolio and make any changes or adjustments as needed.
Keep your eyes peeled for valuable trades
Instead of selling a property outright, you can defer tax on the gain if you trade for a similar property. This cannot be property that you intend to sell immediately, but if you are looking for a new rental, it may be easier to trade a low-performing property of similar value from your own portfolio.
Minimize capital gains
Work with your tax advisor to find ways to shield yourself from heavy capital gains payments. Make suggested changes, and stick with their advice, as long as it makes sense for your business.
Take an inventory if you haven’t already
Spend some time evaluating every property in your portfolio. Make plans to sell the low-performers, or devise a plan to increase your returns on these. Take a close look at your highest performing properties and determine what you can duplicate to increase your overall success.
Consider new investments
Begin planning any new property sales for next year now. Make sure you have all the must-have numbers in order to do a proper evaluation.
Before you go full-steam ahead into 2017, slow down long enough to take a look at what’s working and what’s not. Don’t forget to consult with your lawyer, tax professional and any other advisors that can help you get a clearer picture of how your plans will affect your financial situation.