Capital Gains part 3 | Protect the equity of your investment property when you die!

Now, one thing that a lot of people don't know regarding capital gains and investment in real estate is let's say that you originally invested in housing. You only spend $100,000 and you keep that all invested maybe you do some 1031 exchanges and by the time you pass away, that same original $100,000 has turned into a million dollars. Well, when you pass away and your errors inherit the property. They get a step up in the cost basis to what it is worth at the time they inherited it, not what it was worth when you bought it. So, if you're able to pass the property on to your heirs they are a really great way to get out of having to pay any capital gains tax on the property at all. Of course, the downside is you never got to enjoy all the money so pros and cons.

What does this mean to you? If you're even a little bit interested in learning more about participating in the Phoenix housing market as a seller, buyer, or investor... you NEED to know this stuff! Or at least work with someone who is obsessed with the market stats. Reach out to me today so we can start working on making your real estate dreams a reality!