Frequently Asked Questions

How can I reduce capital gains taxes when I sell real estate?

Why should I involve a professional forester?

How can I reduce capital gains taxes when I sell real estate?

By James R. Richards, Esq.

Lack of a sales strategy may be costing Americans their life's savings. As long as certain requirements are met, the sale of a personal residence (IRS Code Section 121(a)) will not result in the realization of gain to the extent of $250,000 net gain to an individual and $500,000 net gain to a married couple.

For sellers of non-residential real estate, a Section 1031 (IRS Code Section) “like kind” exchange may allow the deferral of gain to the seller. There are no limits to the amount of gain that can be deferred. Though the rules are complex and the variations many, the basic technique involves selling one piece of property through a qualified third-party intermediary and rolling the proceeds into another piece of property purchased through the intermediary. The properties must be of "like kind" which, in the case of real estate, means that the properties are held for productive use in a trade, a business, or an investment. It is critical that proper exchange documentation is in place prior to the closing on the property to be sold. Therefore, it is important to consult a knowledgeable professional with regard to whether a property qualifies for exchange and with regard to structuring the exchange. (For more information go to:  www.pldrlaw.com/attorneys/jrrichards.php.)

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Why should I involve a professional forester?

By Billy Newman, President, EnviroFor, LLC

Whether it’s a single tree or an entire forest, timber evokes a great deal of emotion in many people. For some it is a commodity representing a return on investment. For others it is a creation from God that should be viewed with reverence.

The Society of American Foresters states that "a forest landowner can realize approximately a 24% higher return from the sale of timber with the assistance of a consulting forester." EnviroFor has created a website that responds to improving timber value and reducing taxes. We also go beyond the value of a forest and speak about the conservation of land and its wildlife. For more information, please visit our website at www.Envirofor.com.

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