Here are a few tips to invest in real estate, even if you’ve already done it before.
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Today I’ll be discussing investing in real estate for tax purposes. This time of year many tax consultants will tell you to either buy or sell your investment property.
If you’re going to be selling, the best thing to do to delay taxation is to do a 1031 exchange. This is where you sell your property and buy another similar one. A 1031 exchange helps you save on taxes. Talk to your CPA (Certified Public Accountant) about this.
Another aspect of investing at this time of year is looking for passive income and getting write-offs. Also, your tax consultant is likely going to have you look at depreciation. That’s where you can take some of the value of your property and take it off your taxes.
If you’re selling, the best thing to do to delay taxation is to do a 1031 exchange.
The last thing you should be looking for when buying an investment property is making sure that it’s going to appreciate and increase in value, either from you personally putting sweat equity into it or doing something else to the property to cause it to gain value. The location you choose could also naturally help the property appreciate.
Prepare with your tax consultant this season, and you’ll be ready to move ahead in the real estate investment world.
If you would like to hear about a topic in one of my videos, contact me by phone or email and I’ll address it. You can also always contact me with any questions you may have. I would be glad to help you.