Legacy real estate properties often pass from one generation to another. But when it comes time to sell these properties, are there right and wrong ways to roll over the proceeds to new real estate investments? According to Steven Hornstock, co-managing partner of New York City-based ABS Partners, a full-service vertical real estate company involved in management and leasing, adhering to a handful of proven strategies can make a huge difference. And the strategies are all the more key given the new Trump-era tax laws pushed through in 2017.
Hornstock bases his insights on his firm’s two decades of experience in partnering with real estate investors to maximize returns tied to real estate investments. His firm specializes in providing services that add value in leasing, investment sales, property management, construction management and advisory, and by organizing opportunities for its clients to participate in the ownership of real estate.
“First things first, you have to understand the goal of reinvesting,” Hornstock says. “A family with generational real estate holdings may want to reinvest to defer taxes, or the family might look to income-producing properties for growth. Some want very, very passive investment, some want active investing. The answer to what’s right and wrong is finding an approach that’s manageable for you and comfortable for you.”
Trump-era tax laws
The new tax laws passed under the Trump administration usher in two new and very favorable…