Achieving Financial Strength Through Real Estate Tax Strategies

1402 Words Nov 2nd, 2015 6 Pages
Real Estate Tax Strategies

Achieving Financial Strength Through Real Estate Tax Strategies
The right tax strategy can help you build true wealth because you can deduct hundreds of everyday personal and business expenses and interest payments, generate cash flow from rentals while building equity and realize tax-free capital gains on the sale of primary homes every two years. Any financial portfolio benefits by including real estate to hedge and balance the investments.

In real estate, agents espouse the mantra, "location, location, location," but when discussing tax strategies for real estate, the motto should be "home ownership, home ownership, home ownership." Real estate investing begins with home ownership, which offers an incredible palette of tax advantages for building wealth, sheltering income and buying additional properties through leveraging.

You can generate real wealth by investing in real estate and carefully curating your tax strategy. Smart planning allows you buy multiple properties as a property investor or realize tax-free capital gains from selling and reinvesting in different primary homes. Some of the tax advantages of real estate investing include:

You can buy and sell your primary residence every two years and earn tax-free capital gains, depending on the market and whether you made property improvements and repairs to increase its value.
Single homeowners can earn up to $250,000 in tax-free capital gains, and married couples can earn $500,000.…

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