Saturday, May 01, 2010

Net worth down $14.8k on investment property accounting adjustment

I adjusted our household net worth down $14.8k this month.  The decision to do so was based on the realization that it is impractical to carry my investment properties without a built in adjustment for the capital gains tax we'll have to pay on each of them whenever we sell them.  Yes, we could do a 1031 exchange and forgo the taxes; however, that assumes that at the time of sale real estate is the best investment decision and a great buy is sitting there ready for purchase.

1 comment:

Premium Finance said...

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