Tax Efficiency for Real Estate Investors: Purchase, Rent, Exchange, or Sell

Real Estate Ownership is one of the surest ways to long-term wealth appreciation if not the fastest.

Rented shacks, AirBnb houses, fourplexes, and large residential and commercial real estate partnerships provide all the complexity one could fret for in tax returns. Did you seize the day in 2009 when prices were lowest? Leverage is key because it multiplies small amounts of capital into large with appreciation over time – or multiplies occasional disasters into transactions we advise then record

Yours truly is a business owner who learned real estate construction in woodshop and did all forms of construction part time for thirty years.  I later flipped houses and ran rentals to gain financial independence.  My graduate studies and nine years’ tax work in a CPA office involved all kinds of real estate transactions for individuals, trusts, and partnerships:  Section 121 homeowner sales, 1031 exchanges, depreciation complexities, real estate purchases and business plans, and mortgages and finance.

 

“The income tax has made liars out of more Americans than golf.” — Will Rogers