Better Tax Benefits for Investors Than For You As A Homeowner.

Better Tax Benefits for Investors Than For You As A Homeowner.

A primary and powerful tax benefit of real estate investing is earning tax deductions using what's known as rental properties depreciation. In general, the tax benefits of real estate investing are pretty great for you in the United States.

In other countries, people are astounded that in the U.S., when an investor buys a home that will very likely appreciate in value over the years, but for tax purposes, it's considered like a car, that goes down in value so you can take a loss. What kind of a country does that? Well, a great country.

This is a serious tax benefit. The tax benefits of real estate investing are much better for an investor than the tax benefits for homeowners.\" -Adiel Gorel, Owner of International Capital Group. Investing in real estate is a solid way for you to build wealth and reduce taxes through a variety of means.

So what is rental properties depreciation in its simplest terms? Depreciation is the recovery of the costs associated with the upkeep of your real estate investment properties through annual tax deductions. The depreciation deduction is in essence a recompense for that natural \"wear and tear\". It's a tax benefit of real estate investment properties.

Adiel Gorel has helped thousands of investors just like you to understand the tax benefits of real estate investing and build financial security through real estate investing. For tax purposes, depreciation is always considered a net loss on real estate investment properties, independent of any profits on the property.

The most commonly used rental properties depreciation method is called the modified accelerated cost recovery system, which allows you to deduct depreciation on a residential property for 27.5 years! Investors gained some great benefits thanks to the Tax Cuts and Jobs Act of 2018.

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