Time To Be A Sellout...Migdol Says Yes!
A: An article in today's NY Post sites Harlem developer Jerry Migdol as the latest insider to admit, ..."If you want to make money, the secret is to buy low and sell high. It's so high now it's crazy NOT to sell."
One key aspect of the article discusses using the 1031s Exchange Tax Benefit to use profits of a real estate transaction for future purchases without paying Capital gains. Read my post on 1031 Exchange. Clearly, Migdol believes that the combination of very high prices and Republicans in office make it wiser to NOT use the 1031s exchange and rather pay the low taxes now and put the money in the bank for another day! He says:
'Everyone doing 1031s is nuts..They don't realize that the Capital gains taxes under the Republicans are low: 15 percent to the feds and 7 percent to NY State. Prices themselves can drop 25 percent.'
This broker and homeowner agrees. Those using the 1031 Exchange to rationalize their next higher priced property purchase are taking on more risk than the possible reward they can reap. Its worth a second thought if you are in this situation.
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