Knowing what's expected of you at the time of closing on a property will protect you from financial surprises. Each state is allowed to determine its own taxes. Kentucky, for example, has an income tax while Tennessee does not. In the State of Tennessee, a transfer tax is collected anytime anything of value is exchanged for the transfer of real estate. It's a hefty tax that can add thousands to the final cost.
Buying and selling property and building a robust real estate portfolio can be an exciting experience for both parties, especially when profit, or gain, is part of the equation. Gain happens when property appreciates in value or when the seller takes advantage of depreciation deductions for tax purposes. In either case, it’s important to understand tax ramifications of your real estate transactions and how to make the most of your investment dollars. A 1031 Exchange may be a great option for maximizing your investment and getting the most out of your next commercial real estate investment.
Topics: 1031 Exchange, Commercial Real Estate, Commercial Real Estate Law, Nashville Real Estate Law, Property Tax, Real Estate, Real Estate Attorney, Real Estate Law, Real Estate Title, Residential Real Estate Law