Building Your Real Estate Portfolio
There are two key factors we must consider when building a residential real estate portfolio:
- The projected cash flow and appreciation of the opportunity.
- The impact of income taxes on the earnings.
#1 Cash Flow and Appreciation
It does not matter who is elected president. As America has been under-building residential housing for almost a decade, the tight market will keep driving both rents and prices higher for the foreseeable future. For many years to come residential real estate (housing) will continue to be a reliable vehicle for growth no matter who is in the White House.
A real estate investor who does not pay attention to taxes will needlessly waste tens to hundreds of thousands of dollars.
TRUMP: The JOBS Act passed in 2012 made investing in real property even more attractive than before. If elected in November, these tax cuts are likely to remain in place for four more years.
BIDEN: If elected in November, Biden has already provided several hints including:
- Increasing the tax rate on at least the highest income tax bracket.
- Increasing the long-term capital gains rate to as high as 75% of the short-term rate.
- Reducing the eligibility of certain deductions.
However, BOTH candidates seem to agree on one point. No candidate is suggesting any changes to the tax advantages real estate investing inside a Self Directed IRA. Hence, all IRA tax benefits will remain in place. A qualified Self Directed Roth IRA will still provide 100% income tax-free returns for your life and to your heirs.
Vote for the candidate of your choice. If you believe the winner in November will be:
TRUMP: Investing in real property inside your Self Directed IRA can be profitable.
BIDEN: Investing in real property inside your Self Directed IRA is a MUST to avoid what could be higher taxation on even small earnings.
NOTE: IRA Club makes no comment as to which candidate is best qualified to be president. The above comments are focused only on statements made by the candidates on this one topic by the candidates.
IRA Club offers no investments, products, or planning services. Therefore, please consult your attorney, tax professional, financial planner, and any other qualified person before making any investments.