Sherry's Message For Our Realtor
I have been hearing year after year the wrong message being given out to
exchange clients and you as our Realtor clients are very valuable to us. We
constantly look out for you and I feel it is so important for you to hear what I
have to say.
If misinformation is continued to be given out about sales
property and primary residences, we feel one day down the road you
will have a lawsuit, and we try to do everything in our power to head that off at
the pass before it transpires.
When you get a client who is selling investment property, please tell them
the most important thing before you ever sell investment property is for them to get with
their personal tax advisor to find out just how much capital gains tax they are looking
at. Their tax person has their history, knows their tax bracket, depreciation
schedules, write offs and is their best resource.
If their capital gains tax is high, suggest that they do a 1031 to not pay capital
gains taxes and please advise them to work with an accommodator such as my company,
Tax Free Exchange Corporation, or an accommodator of your choice.
You don't have to know all these tax rules/laws; but it is so important for
you to direct your clients to the proper resources. You know from attending our
seminars that we presented all over Arkansas, Missouri and Oklahoma for years, that it is a vast
amount of information to learn and it's not expected of you to know all of it.
Yet the direction you send your clients not only helps your clients legally
avoid having to pay
enormous amounts of capital gains taxes, it at least educates them that there is
such a resource
available. In addition, most of the time you will be able receive
commission money for both transactions of the
exchange, the sale and the purchase of the replacement properties. Plus, it brings up the trust
value between you and your clients because you are helping them save tax
Otherwise, when tax time comes and they have to pay these taxes,
and their tax
person asks why they didn't do a 1031 exchange, you as the Realtor will be looked upon
for not passing the strategy on to them.
If you do send clients our way for 1031s please let them know to call us at 870-553-2595 after checking out
our website (which has all the information
on 1031s) and leave a message on our answering machine and I will get right back
to them. I will not know they called if they do not leave a message; so please
always let them know we have an answering machine.
Sherry Lee Kerstetter, President
Tax Free Exchange Corporation
11802 Deer Road
Harrison, AR 72601-6550