Need a tax shelter? Take advantage of a down market and invest in Real Estate!
Do you feel like Uncle Sam is taking just too much of your hard-earned income? If your answer is “yes,” have you thought about what you can do to increase your deductions while not increasing your income so that you can reduce the amount you pay in taxes?
The majority of the world’s most wealthy people use real estate as a shelter from all of the taxes they would normally pay on the income that they earn. While this includes the deductions that they receive from their actual homes, what I’m really referring to is investment property; property that you purchase and lease to tenants (could be residential or commercial but I’ll focus on residential). There are a HUGE amounts of tax benefits for landlords which include but aren’t limited to, deducting annual depreciation, expenses associated with the maintenance and management of the property and property taxes.
With that said, if you purchase a property and lease it out for the same amount as your monthly mortgage, you essentially “break even” (don’t increase your income), however, you do significantly increase your deductions and thus decrease the amount you pay in taxes.
Let King Realty help you take advantage of the down market! Don’t be one of those people who say “I wish I would’ve bought when the market was so down.” Contact King Realty today to learn more! Not only can we find you the right house (or homes) to invest in, but we can also help you manage the property and sell the property in the future. Website details coming soon!