Investment property taxes

Benefits of real estate investing

Tax season is always a reminder to get my financial plan organized. The US tax code is complex, but provides quite a few benefits for my real estate investment wallet:

• Deductions — and just to remind you, here are the top 10
• Depreciation — just remember, land doesn’t depreciate over time, unless you’re on the CA coast, yikes
• Long-Term Capital Gains — a property sale is better than a 9-to-5 job
• “Tax Free” Refinances / 2nd Mortgages — defer taxes and use proceeds for another property, where you may be able to deduct the interest from the loan
• 1031 Exchanges — lessons from first timers … the time limits (45 days to identify, 180 to close) are more difficult to meet than you would expect