Monthly Archives: December 2017

Forget New Year’s Resolutions!

 

Introduction…Every year Americans fail to keep their New Year’s Resolutions.

But, somehow we think if we just try harder, this year will be different.

There are scientific and spiritual reasons why we should “Forget New Year’s Resolutions and Instead Prepare Our Minds For Success.”

Click here to watch this powerful 5-minute video.

Click to get 9 Little Known Secrets For Steady Real Estate Income…Free

Happy New Year to you and your family!

Bill Moist, Self-storage buyer and developer

bill@billmoist.net

Click here to see this powerful 5-minute video

How Will The Biggest Tax Cuts Ever Impact Real Estate Investors

  Issue 90 – Fort Worth Skyline

Introduction…Republicans were joyful Friday as they finalized their tax plan, bridging differences between the House and Senate bills and moving another step closer to getting legislation to President Trump by Christmas.

The income tax incentive to invest in real estate is alive and well under the Tax Cuts and Jobs Act.

Here are ten items that will impact real estate investors:

  1. Tax Cuts…The Tax Cuts and Jobs Act represents the largest one-time corporate tax rate cut in history.  The top corporate rate will drop from the current rate of 35% to 21%.  The bill lowers the taxes for most Americans and small business owners and corporate real estate investors and developers.
  2. “Pass through” entities…The vast majority of American businesses “pass through” its income to the owners.  These entities include S corporations, LLCs, partnerships, and sole proprietors.  Under the tax bill, these companies get to deduct 20% of their income tax-free until 2025 when it is scheduled to expire.
  3. Corporate Alt Min Tax…The final GOP bill gets rid of the corporate alternative minimum tax (AMT) which is a big relief for the business community.  The AMT carries a massive unproductive accounting cost for all that are impacted.
  4. Like-Kind Exchanges here to stay…The Section 1031 like-kind exchange which allows real estate investors to save millions of dollars when trading existing real estate for new property remains in tack.
  5. Business interest deduction unchanged…Fear over the mortgage interest deductions has been addressed when the personal residence loan that can deduct interest is limited to $750,000.   Forbes reported they thought this change would eliminate the economic incentive for many to buy homes.  Really?
  6. The longer holding period for long-term capital gains…The holding period to get long-term capital gains tax treatment on the sale of assets is increased from one year to three years.
  7. Limit on state, local, and property tax deductions…Individual taxpayers will face a $10,000 limit on deductions for state, local, and property tax deductions
  8. Individual Standard Deduction Increase…The Individual Standard Deduction is raised from $6,200 to $10,000. Or it could be raised to $12,000 depending on the source.
  9. Estate Exemption to double…Successful real estate investors who want to pass on their real estate to heirs got a break.  The current estate tax exemption for individual doubled from $5,490,000 to $11,000,000.  The current estate tax exemption for couples doubled from $10,980,000 to $22,000,000.  This is a new incentive for investors to build real estate fortunes.
  10. Individual Income Tax Rates Change...The existing individual income tax rates are 10%, 15%, 25%, 28%, 33%, and 39.6%.  These tax rates will be reduced to 10%, 12%, 22%, 24%, 32%, 35%, 37%.  More detail on this item in fiture issues of the newsletter.

In conclusion…The benefits of the GOP Tax Plan for real estate investors will be very significant.

Bill Moist, MS Taxation, CPA
Self-storage buyer and developer
bill@billmoist.net
References:  Heather Long, “The final GOP tax bill is complete.  Here’s what is in it.” Washington Post, 15 Dec 2017; Lara O’Keefe, “7 Items In The GOP’s Combined Tax Bill That Could Affect Real Estate, Bisnow, 13 December 2017; “GOP tax bill: A look at the final brackets, FoxBusiness, 15 Dec 2017

Closely-Guarded Secrets To Becoming Carefree Investor

Issue 89 – Why Those Who Discovered The Secret Are So Happy

Introduction...The meeting was held at ElFenix in Dallas, Texas on March 15, 2016. This was spring break week and attendance was unusually low.  However, the meeting was quite lively and those in attendance were very engaged and excited to be there.  The meeting had a warmth and supportive atmosphere not common to many business luncheons.  Many of those in attendance were owners & investors of this asset class.

I have never been around a group of owners & investors who were so:

  1. Carefree
  2. Stress free
  3. Disconnected from current market conditions concerns
  4. Happy
  5. Joyful
  6. Supportive of one another

Why have you not heard of this before?  Several reasons:

  • Generally, this is not an asset class promoted by Wall Street
  • Insurance salesman do not sell this product
  • This is not a product promoted by most brokers – in fact, very few understand this class
  • Few people even notice this product type when they drive by it or ask if they should have this their portfolio

Here is a true story.  I contacted a broker with a major brokerage firm that I’ve done business with previously.  He said, “Bill, we just don’t sell that product here.”  Later, I discovered that his company had a national group active in this area and one of the top Texas brokers was in his office right under his nose.

So, it is apparent that this is a closely-guarded secret.  In fact, in the state of Texas, there are only a handful of brokers who sell it.

One of these brokers told me, “Bill, I discovered this asset class 17 years ago.  Once I understood it, this is all I wanted to sell.”  I heard those words by several people, “once I discovered this asset class this is all I want to invest in or purchase.”

There are many reasons these owners & investors mentioned above are so carefree.  One reason is that it does well in both good times and bad economic times.  Also, the loan default rate is low single digits.

Click Here to watch the above video The Closely-Guarded Secret To Becoming A Care Free Investor.

Conclusion…You owe to yourself to find out what these happy, carefree owners & investors have discovered.  To discover what they know and “Get Little Known Secrets For Steady Income” FREE go to billmoist.com

How Big Can Self-Storage Get?

 Issue 88 – Largest Public Storage Debut

Introduction...The largest Public Storage property makes its debut in Jersey City, N.J.  The facility is located in the Powerhouse Arts District’s renovated 100-year old, block-long building.

The debut... Public Storage hosted its grand opening this last spring and now offers a total of 3,978 units.

Conclusion….With enough population density, there doesn’t seem to be a limit on how big storage properties can get.