If you're considering legitimizing your real estate investment projects into a business, one of the first steps is selecting the best business entity or business structure. The structure of your business should be based on research and careful consideration of a variety of factors. Some of the most common factors you should consider concerning your real estate business structure include:
The 1031 exchange is a powerful tool that can help you save immensely on taxes following the sale of a property. It's a tax-deferral program that allows you to sell a property and then reinvest the proceeds from the sale into another property of greater or equal value.
Are you an individual or business who owns real estate? If so, you may be eligible to use the cost segregation tax planning strategy. In the simplest sense, cost segregation is a process where certain parts of leased or owned real estate are reclassified to optimize depreciation. Previously reserved for use by the nation's largest real estate owners and the major accounting firms, cost segregation has now become a go-to tax planning strategy for real estate owners and properties of all sizes. Let's take a closer look at cost segregation.
Did you know approximately 90% of the world's millionaires have created their wealth through real estate investing? Whether you're looking to pick up your first rental property or considering adding a commercial unit to your portfolio, there are also several tax benefits of owning real estate.
The allure of real estate with the possibility of positive cash flow is an intoxicating one to invest into. Some investors look to purchase fixer-uppers and invest the money into repairing them and then selling for profit. Others look to go into rental properties and over time build up multiple units. REIT’s (Real Estate Investment Trusts) are also growing in popularity for those who wish to invest in real estate on a small scale without spending a lot out-of-pocket. There are inherent risks of real estate investing and we’ll look at five of them below. These five risks will cover those looking to invest in rental properties and general real estate (non-REIT).
When it comes to real estate and taxes, there are many factors that come into play when figuring out what can be deducted in April. Are you a single-dwelling homeowner owning their own home? Or are you a landlord maverick with multiple rental properties?