How Real Estate Investors Can Maximize Tax Savings
Real estate investing can be a powerful way to build wealth, but smart investors know that success isn’t just about buying and selling properties — it’s also about managing taxes effectively. By leveraging professional accounting tax services , real estate investors can take advantage of multiple tax-saving strategies and boost their overall returns. One of the biggest benefits available to investors is depreciation. Even though property values may increase over time, the IRS allows investors to depreciate residential real estate over 27.5 years. This non-cash expense can significantly reduce taxable income each year. Another powerful strategy is using 1031 exchanges. This provision allows investors to defer capital gains taxes when they sell a property and reinvest the proceeds into another similar property. With proper planning, investors can continue to grow their portfolio without being burdened by immediate tax obligations. Investors can also deduct expenses such as mortgage...