Reading the market headlines lately is enough to turn us all into nail-biters. “World stocks plunge” and “It’s another horrible day” are pretty representative of the doom and gloom these days. What is the average investor to do in the face of all this stomach-dropping, scary news? Let’s start by looking at the facts, in both the short-term and the long-term.
Even with capital gains rates at historical lows, taxpayers always seem to want to defer the payment of tax. Many real estate investors use the strategy of a 1031 Exchange to accomplish this deferral if they are going to continue their investment in real estate. But the recent presidential debates have raised questions about the future of these capital gain rates.