Your Guide to Real Estate Options
Real estate options and leases with purchase options can enhance your real estate investment profits. Here’s a concise guide to help you navigate the potential pitfalls and maximize your returns. Stand-Alone Purchase Option A stand-alone purchase option can be highly profitable. Here’s how it works: Lease with Option to Buy This approach offers several financial […]
Tax Deductions for Raw Land Investments
Purchasing raw (unimproved) land can be a great way to get into real estate investing. Raw land is ordinarily cheaper than land with buildings and other improvements. Moreover, you don’t have the expense of handling building maintenance and other upkeep, not to mention the headaches of dealing with tenants if you rent improved property. But […]
“Real Estate Investor” Vs. “Real Estate Dealer”
Great news! You can have both investor and dealer properties in your real estate portfolio. This distinction is significant for tax purposes. Here’s a snapshot of the potential tax differences between real estate investor and dealer properties: Suppose you profit $90,000 from a property sale: That’s a potential savings of $24,597 in taxes for investors! […]
Cost Segregation: What Is It & When Should You Use It?
One significant tax benefit of owning residential rental property or non-residential commercial or investment property is depreciation—a deduction you get without spending any additional money. But regular depreciation for real property is slow. Residential rental property is depreciated over 27.5 years and non-residential property over 39 years, providing a relatively small deduction each year. Fortunately, […]
Tax Advantages for Real Estate Investor vs. Dealer
