Passive Real Estate Investing 10 Ways to Lower Your Taxes as a Real Estate Investor
Sep 19, 2024
Dive into savvy tax strategies for real estate investors, featuring actionable tips from a tax expert. Learn how to maximize deductions by treating your investments like a business. Discover the advantages of self-directed IRAs and 1031 exchanges for tax deferral. Uncover the benefits of the 20% pass-through deduction and advanced tactics for passive income. Engage with ideas on leveraging equity to enhance cash flow and navigate complex tax landscapes, all aimed at optimizing your wealth in the real estate market.
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Hold Properties Long-Term
- Hold properties for at least a year to get long-term capital gains treatment.
- This strategy opens doors for 1031 exchanges and Opportunity Zone investments.
Avoid Short-Term Gains
- Avoid short-term capital gains by holding properties for more than a year.
- For flippers, holding properties less than a year can lead to higher taxes and potential Unrelated Business Income Tax (UBIT).
House Hacking Tax Benefits
- Live in a property for at least two years to qualify for the sale of home exemption.
- This can exclude up to $250,000 (single) or $500,000 (married) of gain from taxes.