Real estate is the best investing tool that allows much room for credits and write-offs on your tax return. Once a property becomes a "True Asset" by generating  a positive cash flow, it becomes it's own entity and the IRS taxes your rental property as a business. And one of the best things about a business is your able to right off business expenses to reduce your tax liability.

So, REI brings passive income with minimum tax liability!!! A pretty good combination...

Other Tax Benefits:

1031 Exchanges Under the tax code IRC Sec 1031, you can roll your profits from a rental property into other deals and defer paying taxes altogether. Your tax basis rolls into the next property. www.1031x.com

Interest Deduction You get to deduct mortgage interest paid on a mortgage that you have used to acquire your real estate.

Exemption for Principal Residence If you sell your residence, the first $250,000 is exempt from gain or $500,000 if you are married. This only applies if the property was owner-occupied for two of the last five years.

Depreciation Rental property owners get a tax deduction for the "wear and tear" on the building, even if the property increases in value! This allows you to show a loss to offset other income.

Dream Big!

Kindest Regards,

Levi Preston

Asset Acquisition International

845 249 5408

levitravel@nycmail.com

www.linkedin.com/in/levipreston

www.realestateinvestor.com/levipreston

http://levipreston.myplaxo.com