Wasn’t that great? You finally saw your tax bill lowered by having real estate properties. What? Didn’t know that your real estate investments are a great way to shelter your hard earned money from the IRS? Yes, every April 15th, real estate investors make their most money by being able to pocket nearly all of their money made over the year by having extra write-offs, thus lowering their tax bill, and ultimately being able to keep most and sometimes all of their money earned! AND IT IS LEAGAL!
First, it depends upon the investor finding an experienced and property educated accountant who knows what is deductible when investing in real estate. Next, is how the investor is set up (Sole proprietor, LLC, C-Corp) to take the most advantages for themselves as a business. For us, changing over from a partnership to C-Corp was probably the best thing that had happen to us. The thing that held us back about being a C-Corp was the initial cost of getting one set up and the “double-taxation” issue. But once our accountant educated us on how much more money we could save and get ourselves into the 15% tax bracket, in the long run we saved more than ever. Now, instead of losing money into the government coiffeurs, we can use that money saved to do more projects, improving homes, businesses, and peoples lives where we think it needs help the most, in addition, to being immediate help to our own community.
Think about it—research it!
Cristi