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Mr. Blake Allen  

Blake Allen is the owner and employing Broker of Allen Realty, based in Manitou Springs, Colorado.  He has held a real estate license for over 30 years.   Learning the business from his father, Paul Allen, Blake has been involved in real estate transactions as long as he can remember.  

 

Blake was a National Merit Scholar from Cheyenne Mountain High School in Colorado Springs and graduated from Columbia University In the City of New York in 1988 with a degree in biology, receiving his Colorado Real Estate Salesman’s license in the summer between his Freshman and Sophomore years.  After a few years working as a molecular biologist, Blake returned home to the Pike’s Peak Region in 1994 where he continues to practice real estate.  Blake has found his true passion in finding creative real estate solutions for his clients. 

 

Over the years, Blake has attended hundreds of local, regional, and national exchange meetings and taken hundreds of hours of continuing education, a lot of it focused on simultaneous and 1031 exchanges of real property held for investment.  He has closed hundreds of transactions totaling many millions of dollars over the past 30 years and prides himself in the fact that he continues to learn every day.   This has led Blake to focus on better understanding his clients and the benefits they seek.  He finds immense enjoyment in employing creative formulas to provide for his clients’ real estate needs, often through his exchange marketing networks. 

 

Blake is a member of the National Council of Exchangors which has bestowed upon him the Equity Marketing Specialist Designation since 2007.   He is the current (and Past) President of the Pike’s Peak Exchangors as well as Past President of the Colorado Creative Marketing Exchange, his state exchange organization. 

OUR PROGRAM

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Tax Deferral and Tax Exclusion Strategies

 

Income Tax Strategies You Can Use

The sale of investment real estate or personal property (non-real estate) could mean you have to recognize ordinary income, capital gain, depreciation recapture and/or Medicare Surcharge (“Obamacare”) income tax liabilities. Tax deferral and tax exclusion strategies can effectively reposition or rebalance your real estate or personal property investment portfolio to accomplish any number of financial, tax or estate planning objectives while deferring or excluding income tax liabilities.

 

It is important for you to be familiar with the various tax-deferral and tax-exclusion strategies available to ensure you choose the most appropriate strategy for your situation.

 

1031 Exchange (Investment Property)

Section 1031 of the Internal Revenue Code allows you to exchange real or personal property that was held for rental or investment purposes, or that was used in your trade or business (“relinquished property”), for other real or personal property that will also be held for rental or investment purposes, or that will be used in your trade or business (“replacement property”). This enables you to defer the payment of your ordinary income, capital gain, depreciation recapture and/or Medicare Surcharge (“Obamacare”) income tax liabilities.

 

1031 Exchange Benefits

 

Income Tax Consequences

The sale of investment real estate or personal property (non-realestate) may result in the recognition of ordinary income, capital gain, depreciation recapture and/or Medicare Surcharge (“Obamacare”) income tax liabilities. Payment of these income tax liabilities reduces the amount of cash available for reinvestment and makes it difficult for you to reinvest in larger, more profitable properties. Using a 1031 Exchange, you can defer the payment of your income tax liabilities, keeping 100% of your cash working for you by reinvesting in replacement property.

 

Exchanging Throughout Your Lifetime

The 1031 Exchange is certainly a great transaction tool to defer the payment of your income tax liabilities when you sell investment real estate, but it is much more than that. It is also a great wealth-building tool. It allows you to continually defer the payment of your capital gain and depreciation recapture income tax liabilities over your lifetime. This means that you continue exchanging properties as a life-long strategy, always deferring the payment of your income tax liabilities and keeping your equity working for you. Using this strategy, the value of your real estate portfolio, and consequently your net worth, will grow exponentially faster over your lifetime as you continually defer the payment of your income tax liabilities.

 

Step-Up In Cost Basis

After your death, your heirs will inherit your property and receive a step-up in cost basis equal to the fair market value of the property at the time of your death. Your heirs can immediately sell the property without incurring any capital gain and/or depreciation recapture income tax liabilities.

 

 

This information was taken from A Guide to 1031 Exchanges. ©2014 by Exeter 1031 Exchange Services, LLC. 


 
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