Keep More of What You Earn
One of the most overlooked (and misunderstood) advantages of real estate investing is tax savings. And the bottom line is investing in real estate can enable you to legally keep more of what you earn.
Most investors don’t realize how much of a difference the right tax strategy can make.
Here are just a few of the tax benefits real estate investors use:
- Write off repairs, travel, and expenses tied to properties
- Lower taxable income through depreciation (even if the property is cash-flowing)
- Refinance and pull cash out without paying taxes on the money
- Use a 1031 exchange to defer capital gains on properties sold (U.S.)
- Borrow against properties instead of selling (completely tax-free)
- Use cost segregation to speed up write-offs and significantly reduce tax bill
Also, if you or your spouse meet the IRS criteria for Real Estate Professional Status, you can offset active income, accelerate depreciation, avoid Net Investment Income Tax, and increase cash flow.
These strategies aren’t loopholes. They’re intentional incentives. And if figuring out how to use the right tax benefits feels intimidating, I totally get it.
The solution is having a good accountant who understands real estate investing. Having experts in my corner has been a game changer.
I say this all the time, but I mean it…Real Estate is the BEST!
I’m so thankful I ended up in this world. Opportunity is truly endless.
Putting the right tax strategies in place and the right professionals on your team can not only increase the money you hold onto, it can also bring peace of mind. And that’s priceless.
