Recently attended the 2018 Financial Tactics Brunch, which asked that you listen/watch the 2017 brunch stream-able on Amazon Prime. 2017 started with an introduction from Bruce Norris of The Norris Group-touching on how the most important word in Real Estate is: Timing. Next up was Karen with uDirect IRA; speaking about how self-directed IRA’s work. After was Matt and Amanda with Keystone CPA; speaking about what you can deduct and possible changes that were to come up with the 2018 tax code change. Next speaker was Harry with Barth Calderon; speaking about asset protection. Last to speak was Bill with Exeter 1031 Exchange; speaking on some of the nuance’s of 1031 exchanges. Lastly was a panel, made up of all the above speakers-starting with Bruce Norris leading the Q&A, eventually leading to the audience asking questions.
Following him was Karen with uDirect IRA Services, and something positive to report is that with the new tax code-it seems that President Trump left retirement alone-yay! On top of that, there may be a possibility of raising the contribution limit to one’s IRA. Something else new is Crowdfunding, new still and working out some kinks but very interesting option indeed. With IRA’s, it is important to keep in mind what you can’t do-such prohibited transactions as disallowed people, collectables, and life insurance.
Next up was Matt and Amanda with Keystone CPA, speaking on now confirmed tax changes. For example, HELOC for primary homes are now very limited. Some deductions, such as Entertainment, are also now no longer allowed deductions. Something good that came from the tax changes was the…
The other thing that was interesting “OZones” or Opportunity Zones. Areas that the government is trying to improve upon, and enticing investors to invest in by offering that you only must invest your gains and you can get depreciation on your investment. This does require its own LLC and has similar time frames to 1031 exchanges. This is still new and rules for this are changing constantly.
Second to last was Bill from Exeter 1031 Exchange; and his part of the industry was very minimally affected by the tax code, with the exception that the Personal Property category was eliminated. He did notice a trend of selling in CA and buying outside of CA, and reiterated a warning of watching out for the “California Clawback”. The way to avoid this is to “Swap Till You Drop”-and otherwise noted that there is an increase of 1031 exchanges, which is just a factor of the market we are currently in. You can combine exchanges, use exchanges to build on a property already owned, and there is no holding period requirement for 1031-you need only to be able to prove intent.
Lastly was Harry from Barth Calderon-and everyone loves to ask the Lawyer questions even though his job is to come in and put the realistic spin on things. Did you know that last year was 50 Million Lawsuits-and that 20 Million of them were tart related lawsuits? He explained there are three general asset protection rules to follow:
Following a small break, we lastly enjoyed the panel-first led by Bruce and finished by the audience’s questions. We highly enjoyed going to this event, highly suggest others to attend, and look forward to attending it again next year!
Yorba Linda, CA-TRREG DRE#01843673-RP100 DRE#02059058-P:714-831-1800-E:info@theresultsrealestategroup.com-W:www.theresultsrealestategroup.com-Facebook - Twitter - Instagram - LinkedIn
2018 Financial Tactics Brunch
Held at the Segerstrom Center in Costa Mesa-now for its 8th year-The brunch started with complimentary breakfast and then proceeded to start with an introduction from Bruce Norris of The Norris Group. This year is an advanced year-speaking mostly about changes and trends. In Bruce’s introduction, he let us know that coming in January of 2019 will be coming a report titled: California Real Estate on Borrowed Time. Comfortable title huh? Following that he discussed 10 things to consider when making a decision that might affect you for the next decade:
1. Make a decision early
2. Avoid flawed inventory
3. 1031 Exchange
4. Exit flips with only one solution
5. Consider decade coming up
6. Low maintenance/desirable rentals
7. Assemble a team you trust
8. Be willing to go through a transitional year
9. Consider another state (TX, FL, AR)
10. What makes it attractive?
Following him was Karen with uDirect IRA Services, and something positive to report is that with the new tax code-it seems that President Trump left retirement alone-yay! On top of that, there may be a possibility of raising the contribution limit to one’s IRA. Something else new is Crowdfunding, new still and working out some kinks but very interesting option indeed. With IRA’s, it is important to keep in mind what you can’t do-such prohibited transactions as disallowed people, collectables, and life insurance.
Next up was Matt and Amanda with Keystone CPA, speaking on now confirmed tax changes. For example, HELOC for primary homes are now very limited. Some deductions, such as Entertainment, are also now no longer allowed deductions. Something good that came from the tax changes was the…
Flow Through Entity Tax Break: Section 199A:
Yes: Realtor/Broker Commissions, Rental Income, Flip Income, Whole Sale Income, Property Management, Syndication Fees
No: Interest Income, Capital Gains Income, W-2 Income, Retirement Income
The other thing that was interesting “OZones” or Opportunity Zones. Areas that the government is trying to improve upon, and enticing investors to invest in by offering that you only must invest your gains and you can get depreciation on your investment. This does require its own LLC and has similar time frames to 1031 exchanges. This is still new and rules for this are changing constantly.
Second to last was Bill from Exeter 1031 Exchange; and his part of the industry was very minimally affected by the tax code, with the exception that the Personal Property category was eliminated. He did notice a trend of selling in CA and buying outside of CA, and reiterated a warning of watching out for the “California Clawback”. The way to avoid this is to “Swap Till You Drop”-and otherwise noted that there is an increase of 1031 exchanges, which is just a factor of the market we are currently in. You can combine exchanges, use exchanges to build on a property already owned, and there is no holding period requirement for 1031-you need only to be able to prove intent.
Lastly was Harry from Barth Calderon-and everyone loves to ask the Lawyer questions even though his job is to come in and put the realistic spin on things. Did you know that last year was 50 Million Lawsuits-and that 20 Million of them were tart related lawsuits? He explained there are three general asset protection rules to follow:
1. Don’t protect after a big problem, do it before
2. Living revocable trusts offer no asset protection
3. Insurance can not be your only possible defense
Can they take my house? CA gives you some equity but sells the rest.
Can they take my other properties? Not if they are in their own LLC’s
Can they take my IRA? In CA, it depends.
Following a small break, we lastly enjoyed the panel-first led by Bruce and finished by the audience’s questions. We highly enjoyed going to this event, highly suggest others to attend, and look forward to attending it again next year!
Yorba Linda, CA-TRREG DRE#01843673-RP100 DRE#02059058-P:714-831-1800-E:info@theresultsrealestategroup.com-W:www.theresultsrealestategroup.com-Facebook - Twitter - Instagram - LinkedIn
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