There is no law requiring you to hire a real estate tax attorney when selling or buying real estate, but this does not mean that it is not in your best interest to seek legal counsel. In general, hiring a real estate attorney is better for your interests. With that being said, you should know that there are a couple of situations in which these legal services can prove to be very important. Keep reading to learn more about a few of the times when you should hire a real estate tax attorney.
Selling A Home As Part Of An Estate
Whether you are the sole beneficiary of an estate or the proceeds of this estate will be shared by multiple heirs, it is important to ensure you have legal representation when selling a home that belongs to the estate of a loved one that has passed away. The reason that this is so important is that there can be multiple overlapping tax liabilities in this situation. For example, selling a home that is part of an estate can result in income tax, inheritance tax, and real estate tax. Without the assistance of a real estate tax attorney, you could find yourself paying far more in taxes than you really need to. That is why it is so important to consult a tax attorney prior to placing this home on the market.
Buying A Rental Property
Investing in rental property can be a wonderful opportunity to create wealth and establish passive income streams. However, what many people do not realize is that investing in rental properties can also make them eligible for a variety of different tax breaks and incentives. For example, if you are planning to sell an existing rental property prior to purchasing a new one, you may be able to benefit from the use of a tax incentive known as a 1031 property tax exchange. This particular type of tax incentive allows you to defer the income taxes that you will normally pay on any profit resulting from the sale of your existing property so that you can reinvest this money in the rental property you wish to currently purchase. Working closely with a real estate tax attorney when purchasing rental properties can help you to easily identify all of the different tax incentives that apply to your specific situation so that you can ultimately get the most out of your investment dollars.Share