Richard Gann and Jason McMurtry, Managing Partners of 1031 Capital Solutions, recently launched Exchange Illustrator. With this software, rental housing providers can evaluate their investments and decide whether to keep, sell or exchange their properties. Exchange Illustrator is also a valuable tool for real estate professionals seeking to add consultative value to their practice. Exchange Illustrator offers multiple modules for rental housing owners: SHOULD YOU KEEP, SELL, OR EXCHANGE YOUR RENTAL? HERE’S HOW TO DECIDE
Cash Flow Analysis
This module snaps a quick X-ray of the financial health of your current rental property. Factoring all revenues and expenses (including personal time, future capital expenditures, vacancies and turnover costs), one can determine key metrics like annualized Cash Flow and Yield on Equity . These bottom-line results are crucial to making an apples-to-apples comparison between an existing rental property and other potential investment options. Having made the decision to sell, the next question is whether to receive taxable sales proceeds or conduct a tax-deferred 1031 exchange. The Tax Estimator module estimates the tax consequences of selling an appreciated rental property, factoring such elements as prior capital expenditures, cumulative depreciation, offsetting losses/credits, and state taxes.
Tax Estimator
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