Tax Advantages of Investing in Real Estate
Let me show you exactly where your knowledge in real estate taxation takes you.
Real estate is indeed powerful in the tax world.
It is by far, the NUMBER ONE biggest tax advantage that exists in our entire IRS tax code, second to business!
And that works PERFECTLY because having a real estate business means that you’re doing real estate which is the number one tax write-off. But then because it’s a business, you’re ALSO taking advantage of number two, which is, a business!
Let’s talk business for a second.
When you have a business, you get to:
- write mileage off your cars
- lease cars in the name of a company
- write off cellphone bills
I’m not a tax lawyer or a CPA, but you should work with one to really get concrete on how to make sure you maximize all those different tax deductions that you possibly can!
In real estate, you get to write off ALL THE INTERESTS against a property.
I know a lot of people who “learned their lesson” and were traumatized by their failed experience in real estate.
What they don’t realize is that THIS IS ONE OF THE BIGGEST TAX ADVANTAGES
In real estate, all that rental income you get, it has to go AGAINST the expenses of that property, the interest to that property. What that does is you make money while showing a loss!
In fact, if you buy real estate the right way, every time you buy a house, you make more money.
BUT at the end of the year on your taxes, you show yourself making less money.
So get educated, work with the right tax team, and get all those real estate tax deductions!