What Tax Benefits Are there for Real Estate Investors?

Long Beach Real Estate Podcast with Tim Majka

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Today we are excited to bring you the second half of our two-part series on the tax benefits of owning real estate. Last time, we talked about the advantages of owning and living in a home as far as your taxes are concerned. Today we are talking about even more tax benefits, but this time from an investor’s perspective. Here are some of the best benefits.

First off, you can sell your investment property without having to pay capital gains via a 1030 exchange into another investment property. This allows investors to continue to take out their equity, and re-invest it in something bigger and better.

Let’s say you start off by investing in a single-family home. As it goes up in value, you can sell the property, do a 1031 exchange, and buy a better property with the equity. Some other tax benefits that home investors can take advantage of include deducting property taxes and depreciating the value of a home over 27.5 years.

These are just a few of the ways you can save on your taxes and protect your real estate investments. Before making any moves, however, we advise you to reach out to your tax professional and see what works best for you. If you have any questions, give us a call or send us an email. We look forward to hearing from you!