Woodland Hills, CA (PRWEB) February 08, 2013
In what appears to be holding up as a strong true estate marketplace delivering fairly advantageous returns as we enter 2013, it may well look that the expiration of Bush-era tax cuts and substitution of the increased capital gains tax rates established by The American Taxpayer Relief Act of 2012 could lessen options and returns for the upper-earning investor.

Not so, says Kevin Levine, Executive Vice President of Peak 1031 Exchange Inc. (http://www.peakexchange.com), Even though at initial glance, federal and state tax prices could rise a staggering 58% for actual estate investors beneath numerous aspects of post-Fiscal Cliff and other new legislation, there are ways to soften and delay that form of impact.

Levine advises investors with an eye on lengthy-term returns to assess each their portfolio and their sense of exactly where the industry is headed and — if they stay committed to genuine estate as a channel for robust returns and inflation protection — to investigate a 1031 exchange to defend gains to date and defer the bite of elevated taxes for now. Executing a 1031 exchange permits a actual estate investor to defer the capital gains taxes generally due on the sale of a home by way of a like-type home exchange rather than an outright sale.

For the upper-earnings investor, the capital gains tax rate has improved from 15% to 20%, to which must be added state taxes in certain states as effectively as a 3.8% Medicare surtax on net investment income — but under a 1031 exchange, all of these improved taxes are deferred. In reality, Levine points out, investors had already begun to come to Peak 1031 Exchange, Inc. to investigate and execute these kinds of transactions even just before the Fiscal Cliff was averted at years end. It turns out to have been a wise defensive move then, he says, One particular that, for the proper investors, seems even smarter to check out proper now.

Peak 1031 Exchange, Inc.(http://www.peakexchange.com) is a leading national provider of tax-deferred 1031 exchange solutions, specializing in all like-type transactions including Simultaneous, Delayed, Reverse, Improvement and Individual Home exchanges. It is part of the Peak Corporate Network (http://www.peakcorp.com), a brand representing a group of entities providing a complete array of commercial and retail actual estate services nationwide which includes mortgage lending, loan servicing, brief sale solutions, foreclosure solutions, real estate brokerage and escrow services.