One of the most compelling reasons to choose to invest in real estate over other investments is the vast tax benefits. In fact, it’s one of the main points of discussion each time we talk about why to invest in real estate. However, navigating the tax code and legal nuance can be a mystifying exercise in frustration.
For real estate investors, taxes and tax legislation are one of the most important things to keep up with. Not only are the vast tax benefits that investors can capitalize on important, but so is the local legislation that affects our individual investment markets.
Thus, we recommend that our investors, including our out-of-area investors, pay attention to stories such as this because they can have real effects on portfolio success. So pay attention, we have good news for investors with properties in Texas!
As 2019 kicks off, one item growing on many of our to-do lists is taxes. As records begin to trickle in and your documents get in order, you begin to sort out every last financial detail so that you can pass it all over to your trusted CPA. After all, you want your tax return back as soon as possible.
Wherever real estate investment and taxes are concerned, people tend to get a little nervous. After all, taxes and all the legal trappings that come with exchanges, exemptions, exceptions, write-offs, benefits, and penalties get tricky if you’re unfamiliar with it all. And if we’re honest, it’s not in most of our proverbial wheelhouses.
If you’re at all familiar with real estate investing, you know that one of the biggest advantages that proponents of real estate investment laud are tax benefits. This benefit, however, can sound vague to anyone who isn’t familiar with tax law or doesn’t handle their own taxes—and let’s be honest, most of us don’t!
While the only things guaranteed in life are death and taxes, that doesn’t mean tax laws are unchanging. For 2014, many tax laws that people have counted on for good tax breaks are expiring — and not all of them are certain to be renewed. Not only that, but both representatives of the White House and Congress are calling for major tax reform that could have some other major changes in store.