Real Estate
Realize the tax benefits of real estate investing by exploring deductible expenses such as mortgage interest and property taxes. Discover additional advantages through limited partnerships and LLCs. Tap into government-initiated tax credit incentives like historic preservation or low-income housing credits to reduce tax liabilities and maximize returns. Follow this strategic blueprint to boost property value and build wealth effectively.
Depreciation, mortgage interest, property taxes, maintenance, and repairs are all deductible expenses for property owners, reducing taxable income.
Deductions
A 1031 exchange entails selling an investment property and using the proceeds to buy a similar property within a set timeframe, deferring capital gains taxes until the new property is sold.
Tax Deferral
The homeownership exclusion exempts a certain amount of profit from capital gains taxes when selling a primary residence. Equity conversion involves borrowing against home equity, possibly for tax-advantaged investments.
Other Benefits
Given the potential for tax rules and benefits to change, it's crucial to seek advice from a tax professional before basing investment decisions on tax considerations. Additionally, while real estate offers long-term investment opportunities, it comes with risks and demands effort, emphasizing the need to avoid investing solely for tax benefits.
Important Things
Real Estate as Tax Shelter
Ashley N. Scott is a trailblazing entrepreneur and Internal Communications Manager at RICE. She co-founded The Freedom Georgia Initiative, advocating for Black family empowerment. Notable for leading 19 Black families to acquire 502 acres near Atlanta, she envisions an eco-friendly, self-sufficient community. Based in Stonecrest, GA, she's an active member of Keller Williams Premier, Dekalb Association of REALTORS, and Alpha Kappa Alpha Sorority, Inc.
She's a recognized speaker and contributor, featured on platforms like Earn Your Leisure, CNN, and Forbes. As Chief Storyteller at the Russell Innovation Center for Entrepreneurs, she continues to impact real estate and community empowerment.
Ashley Scott
