Tax Advantages of Investing in Real Estate

Real estate investments offer significant tax advantages, including depreciation deductions that can reduce taxable income to near zero, even when there is positive cash flow. For example, a property generating $3,000 in profit after expenses and debt payments might have a depreciation deduction of $3,600, resulting in a $600 taxable income and effectively a zero tax bill.

Real estate investments offer significant tax advantages, including depreciation deductions that can reduce taxable income to near zero, even when there is positive cash flow. For example, a property generating $3,000 in profit after expenses and debt payments might have a depreciation deduction of $3,600, resulting in a $600 taxable income and effectively a zero tax bill.

Real estate investments offer significant tax advantages, including depreciation deductions that can reduce taxable income to near zero, even when there is positive cash flow. For example, a property generating $3,000 in profit after expenses and debt payments might have a depreciation deduction of $3,600, resulting in a $600 taxable income and effectively a zero tax bill.