5 Incentives from Real Estate Investments
Published on Thursday, 21 January 2010
The allure of investing in real estate doesn't only lie on the possible return of investment it can give but also on the many different incentives it has, like tax deductions. This alone can be reason enough for a lot of people to invest in real estate. To sweeten up the real estate pot a little more, here are the top 5 incentives when you invest in it. 1. You can offset mortgage loan interest used in real estate investment against income of the same amount. In effect, the interest deduction from investment in real estate is almost the same as that of the deduction in a home mortgage. 2. The property taxes you pay for real estate investment can also be deducted from your taxable income. So, the greater the amount you pay for property tax, the greater your tax savings. 3. The insurance premiums you pay for real estate investment can also be deducted from your taxable income. 4. You can deduct maintenance and repair costs from your other income, thereby lowering your tax bill. 5. As years go by, your property depreciates (it's value as an asset goes lower) and offsets income from taxation. This does not affect your market value. You can get the most out of this by depreciating your property as fast as possible. Keep these 5 incentives in mind when deciding whether to invest in real estate or not.
|Self Storage ©2008 - Feb 08, 2016, 12:12 pm|