MODERN REAL ESTATE INVESTING STRATEGIES for TODAY’S market

Tax Benefits Of Real Estate Investing:

• Property taxes are deductible.
• Use of property for an in-home office is deductible.
• Recover the cost of capital assets through depreciation.
• Mortgage interest paid on primary residence is deductible up to $750,000.
• Property purchased as LLC and can be passed down without inheritance tax.
• Home equity loan or second mortgage interest paid is deductible up to $100,000.
• The IRS allows a one-time tax credit of up to $8,000 for first-time home buyers.
• Certain energy-efficient improvements qualify home owners for a tax credit of up to 10% of the cost of the improvements.
• Points related to refinancing, as well as any remaining points on the old mortgage paid by the new mortgage are deductible.
• Homeowners can exclude up to $250,000 (for single filers) or $500,000 (for married couples filing jointly) of capital gains on the sale of their primary residence.
• If you’re not satisfied with an investment property or you want to relocate, IRS Tax Code 1031 Exchange allows you to sell and buy a new investment in its place without paying taxes on the proceeds from the sale.

• Uncovered damages are deductible.
• Prepayment penalties are deductible. 
• All property taxes paid are deductible.
• Any rental income can be excluded.
• Mortgage interest paid is deductible up to $750,000 combined for both houses.
• The 1997 Taxpayer Relief Act eliminates much of the taxes on gains if you need to sell, and can meet specific criteria.
• If you can run a business out of it, lease it to yourself and partake in both the ownership tax benefits and lessee tax benefits.