Need to decrease tax burden and scale up!

[James H.]

Hello BP, I have a situation that involves my father in law who's a longtime investor with multiple free and clear small apartment buildings in a good market. We are looking for advice or an advisor that can help w the best strategy to reduce our tax burdens and maximize wealth opportunities. I also have a few properties myself And looking scale up.

Please respond or request an add so we can chat.

Thanks in advance! 

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Originally posted by @James H.:

Hello BP, I have a situation that involves my father in law who's a longtime investor with multiple free and clear small apartment buildings in a good market. We are looking for advice or an advisor that can help w the best strategy to reduce our tax burdens and maximize wealth opportunities. I also have a few properties myself And looking scale up.

Please respond or request an add so we can chat.

Thanks in advance! 

 Your father-in-law might consider taking out financing on the free & clear properties and using the money to invest elsewhere. Borrowed money is not taxed. Properties with loans on them are less likely to be part of any lawsuit that may come along. Free & clear properties are very tempting for attorneys. Also, if he sells the properties he probably will have cost of sale and capital gains and will have less to work with. You would have to run the numbers to know for sure. 

Also, since I don't know what your father-in-law's plans are for the properties when he is no longer around, he might consider hanging onto them until he passes and whomever inherits the properties should have a stepped up tax basis which is a very big deal.

And, as another idea, he can probably do 1031 exchanges to other properties if that is his goal.

He may need asset protection advice and estate planning advice to go along with his investing.