The Advanced Tax Guide for Real Estate Investors [Infographic]The government offers tax benefits to real estate investors because it entices them to stimulate the economy and create wealth. The wealth benefited not only the investors but also others. There are, however, certain tax rules investors need to know about, which they can use to their advantage later on.
Do you want to learn the skills you need to become a successful investor? Here’s an advanced guide that will help you improve your taxation skills. Check out this advanced tax guide specifically curated for real estate investors.
Deciphering the JargonWhen it comes to filing taxes, many jargon terms start floating around. These terms can seem confusing and complicated, more than they should be. So, here is a simplified version to understand these common terms better and use them to your advantage.
Straight Line Depreciation
Taxes Incurred By the Real Estate InvestorThere are mainly three types of taxes that you need to factor into your investment.
Capital Gains tax
Tax Deductions and BenefitsReal estate agents and homeowners can claim many deductions, exemptions, and credits. It would be best to take advice from a professional tax lawyer for the latest updates and relevant tax information catered to your situation. A few criteria for eligibility are:
- Repairs, renovation, and maintenance
- Depreciation on newly purchased items
- Travel expenses for out-of-state properties
- Negative gearing: annual investment cost
- No tax on the appreciation
- Temporary deferral of capital gain tax by selling a property and reinvesting gains in an opportunity fund
- Straight-line depreciation
- Accelerated Depreciation
Summing Up:Managing different properties and keeping track of relevant tax information for various locations can be complex and time-consuming. Hence, hiring an expert to address those financial concerns would be advisable. Tax laws keep changing, and the real estate tax implications will vary year to year. To stay on top of your Real Estate Investments, try SyndicationPro’s robust and easy-to-use Investor CRM, Investor Portal, and Investment Management Software.
Here is an Infographic for your reference. Save it for later!