Sold! $430,000

1 bed · 1 bath · 928 sqF

LAKE VIEW! Massive 1 bed 1 bath +den/office boasts expansive remodel: new laminate flooring & carpet, huge W/I closet, new electrical panel, new kitchen countertops, remodeled fireplace, renovated bathroom, new lighting, new hot water heater- and MUCH more! Beautiful, covered, deck with storage, + addtl. storage avail. at carport. Easy access to the lake, trails, golf course, and park. Award-Winning Lake Ballinger Estates offers low fee RV & boat parking + club H w/pool and exercise room. Minutes walk to MLT Transit and coming soon light rail! Recharge and have fun in this dream-like unit!

Your real estate solution awaits.

Would you be willing to put off the sale of your home for 2 years in order to be able to reinvest your proceeds and defer taxes on your sale?

Here is an example of a client we are working with right now:

Our client has a highly appreciated home, wants to defer taxes on the sale of their home and still be able to claim the Section 121 exclusion.

· Client paid $198,000 for their Sammamish home in 1989.

· Client invested $143,500 in improvements over the years and has the receipts:

New Kitchen, New master bath, new roof, new guest bath, added a fence, 2 decks, created a closet in the attic off the master bedroom, added a patio off the front porch

· Client’s house value today about $1,650,000.

· If they sold it, they would likely have to pay capital gains tax of about $135,800 as follows:

Sales Price: $ 1,650,000

Cost of Sale: $ 132,000

Purchase Price: $ 198,000

Improvements: $ 143,500

Gain on Sale $1,176,500

Section 121 Excl $ 500,000 (married filing jointly)

Taxable Gain $ 676,500

Cap Gains Rate: 20%

Tax on Sale: $ 135,300

Last year they bought a home in Florida for $579,000 that they hope to retire to someday, but for now, are renting the home to cover the costs.

When they decide to retire, they plan to:

1. Move into their Florida rental house and make it their new primary residence.

2. Convert their Sammamish house into a rental property for at least 2 tax seasons.

3. After 2 years of rental, but before 3 years of rental, sell the Sammamish house using a Section 1031 exchange.

4. Claim the Section 121 exemption on the sale of the Sammamish house and use that $500k to pay off their loan on the Florida house.

5. Use the 1031 exchange on their sale to roll the remaining proceeds into a Delaware Statutory Trust so it would continue as investment property for them.

After all that, they hope to end up with:

· A Florida home free and clear of all debts;

· About a $919,000 investment in a DST (currently yielding about 5% cash on cash).

Look at the attached chart below to see an example they used to make their decision. It’s a side-by-side comparison for them showing the difference between Selling now and paying the taxes vs converting to an investment property and then exchanging into a DST in about 2 years.

Example of Sammamish client transition to DST.

Get Started →