Tax Advantages of Real Estate
The tax advantages of real estate are staggering. You can own a rental unit, collect rent, pay operating expenses and loan payments, and come out with a positive cash flow, and then still get a tax break. When you own rental real estate, or even if you just buy and sell properties, you are classified as being self employed. You are also allowed to deduct operating expenses, which further reduces your income for tax purposes.
Been self-employed is one of the greatest tax savings tools that exist. You are able to shift a lot of your regular living expenses into the area of legitimate tax deductions. Of course, along with the advantages of preferred tax treatment, appreciation, and leverage, there is also monthly income that can be made, using a few simple methods of buying, renting, managing, and selling.