Real Estate Tax Benefits

One of the many benefits that accompany home ownership versus renting is the myriads of tools available that to lead to paying less taxes.One of the reasons why we founded a real estate investment company is because real estate is one of the most popular investments strategies used to generate, protect and grow wealth. In order to reap the tax benefits of owning real estate one must understand what is available by the U.S tax code and learn how to capitalize on the tax strategies.

Whether we like it or not, we all have a silent partner that goes by the name of Uncle Sam who automatically deducts his monetary share directly out of our hard earned income and even debt cancellation. Below is a short list of strategies available and used by high earners to reduce their tax bill.

Top Benefits of Owing Real Estatebest strategies used to reduce your tax bill.

  • Deductions
  • Long-Term Capital Gains
  • Depreciation
  • 1031 Exchange
  • Self-Employment/FICA Tax
  • Borrowing Against Home Equity
  • Mortgage Interest Deduction
  • Deferring Taxes on the Sale of a Home

They say paying taxes is unavoidable like death; I say, at least with real estate you could salvage extra years of life by saving money on your tax bill! There are many options available to the real estate investor and/or owner who is looking to reap the benefits of the tax benefits available to reduce their tax liability. Each individual will have a personal situation that will dictate which of these options will be the most advantageous. These are just several ways to get the most out of your real estate investment.

Disclaimer: We are not tax specialist, it is crucial that you maintain educated on this topic and discuss these options with a investor savvy CPA.