Capital Gains increase, what is your strategy?

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August 02, 2021

by a searcher from American InterContinental University - Atlanta in 930 Thomasville Rd, Tallahassee, FL 32303, USA

Open discussion:

If capital gains does increase to match income tax how do you see that effecting the Acquistion market? Does anyone have strategies to minimize the burden? Do you feel this will have impact on deal volume or seller interest?

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commentor profile
Reply by an intermediary
from City University of New York (CUNY) System in Wesley Chapel, FL, USA
The issue is going to be with Sellers. Having psychologically set themselves with a value expectation or multiple, when they wake up and ask the question "what am I going to keep after taxes", it's going to be a major deterrent to completing a deal. The ignorant will say, "just up the price to keep me whole." We all know that isn't going to happen, so some strategies like structured sales (to the degree the Seller is comfortable) and 1031's will be more of an option. As we get later in year, more ideas will have to percolate as Seller's will wake up to the issue in Q4 and it will be too late without alternatives.
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Reply by an intermediary
in Port St. Lucie, FL, USA
1031 Exchange is your best option in my opinion. My friend Benny who is the President of Cres Corp in Florida does real estate deals all the time as a 1031 Exchange. Visit his site at: http://crescorpintl.com/

Tell him David from Pharus Funding Partners sent you. Have a blessed day.
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