10 Tax Benefits of Owning Real Estate

Financial Fridays with Realtor Kelly Turbeville

One of the reason's we love helping our clients expand their real estate assets is the tax benefits it provides to their families.  Let's be honest, no one loves paying taxes and in a day with inflation taking a portion of every dollar, having the opportunity to reduce, avoid or defer taxes is a huge benefit. 

Good news owning real estate provides you a valuable opportunity to do just that!  

Buying a home doesn't just provide shelter.. It is key asset to help you build financial security and help reduce your tax liability.

Here are ten common tax benefits associated with owning real estate:

✨Mortgage Interest Deduction: 

✨Property Tax Deduction: 

✨Depreciation Deduction: 

✨1031 Exchange: 

✨Capital Gains Tax Exclusion:

✨Home Office Deduction:

✨Rental Loss Deduction: 

✨Tax-Free Exchange of Partnership Interests: 

✨Energy Efficiency Tax Credits: 

✨Real Estate Professional Tax Benefits:

Here is a bonus one you may not be aware of,  is to eliminate/defer capital gains is through the use of a 1041 complex trust.

It's important to note that tax laws are subject to change, and the applicability of these benefits may vary depending on your individual circumstances. Therefore, it is recommended to consult with a tax professional or accountant to understand the specific tax advantages available to you in your situation.

Happy to refer you to resources that can help you take advantage of these benefits. If you don't own real estate, we should talk! 

Comment below if you found this helpful!

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Location: Portola Hills, Lake Forest, CA 92679, USA

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