Your #1 Investment Tax Write Off: Real Estate Depreciation
Sometimes Tax Time can be so painful...
Remember the last time your Mutual Funds took a loss and you STILL had to pay taxes. Doesn't seem fair. And when your stocks take a loss all you can do is write that off against your stock gains.
Have you ever thought to yourself,
"Wouldn't it be nice to be able to get good cash flow and a generous tax deduction from the same investment?" Think of it... a single investment offering you the best of both worlds. Is that even possible?
I have good news, because that is Exactly what direct ownership in Commercial Property offers you. AND I guarantee you this is information your Stock Broker doesn't want you to know.
Here's the best tax write off in Investing...
When you own Commercial Real Estate you can take as much cash flow as the property will produce as income AND use Depreciation to write off thousands of dollars of that income every single year.
There it is ... that "Best of Both Worlds". You take Cash Flow as income and write off Depreciation at the same time ... no matter how much Income you made on the property that year.
Here's how Depreciation works...
Commercial Real Estate is "Depreciated" using a 39 year tax life. The IRS basically says that the buildings on the property are worthless 39 years after you purchase. This means every year you can write off one thirty ninth of the value of the building(s) against your income for the year.
It's a leveraged write off too...
Here's what I mean. You get to write off 1/39th of the Entire Value of the Entire Property ... not just money you personally put in to the deal.
Check out this example...
If you put $200K cash down on a $1M Commercial Property, you can use Depreciation to write off 1/39th of the full $1M - not just the $200K you put in. This equals $29,614 per year, every year for 39 years in a row if you wish.
And it gets even better...
You can even "Accelerate the Depreciation" and take a bigger write off than this.
Certain parts of your Commercial Property can actually be depreciated over shorter tax life periods and give you an even larger depreciation deduction. It's done using a technique called Cost Segregation.
Here's how it works...
Some components of your Property have a tax life of five years, some seven or even 15. There are consultants who can routinely add thousands to your annual Depreciation write off by taking a week to do a Cost Segregation Analysis for you. You can find hundreds of Cost Segregation Consultants with a single search of that term in Google.
Accelerated Depreciation is totally painless, gives the already generous depreciation write off a major boost. Even though it sounds like magic, this technique is completely above board and accepted by the IRS.
At Tax Time it is important to remember this...
Depreciation is the #1 Tax Write Off available to investors today and just one of the reasons Commercial Property deserves a prominent place in your portfolio.
We have created a special report outlining 35 separate unique advantages of direct ownership of Commercial Property. You can download your copy at our website below to kick start your Commercial Real Estate Investing Education.
Monte Lee-Wen has purchased over $150 Million in Commercial Property to date. His training programs teach you the Insider Secrets of Commercial Property Investment. CLICK THIS LINK NOW http://www.investortours.com/ to get your FREE Report, "35 Reasons You Should Invest in Commercial Real Estate"
Related Articles:
The Roland Stafford Golf School and the Heritage Hills Golf Resort Team Up
The Roland Stafford Golf School and the Heritage Hills Golf Resort join to create one of the finest golf learning experiences in the country. Conveniently located in the scenic hills and valleys of South Central Pennsylvania just 35 minutes south of Harrisburg, the golf school and resort are within easy driving distance of Baltimore, Washington DC, Philadelphia and Pittsburgh.
Maryland Real Estate Agent Helps Busy Buyers Find Homes
Andy Kraus, a REALTOR® licensed in Maryland and Virginia, offers unique tools to help busy buyers find their ideal home through his information-rich website.
No End in Sight for California Foreclosure Mess March Sees Record Levels of California Foreclosure Filings
ForeclosureRadar (www.foreclosureradar.com), the only website that tracks every California foreclosure with daily auction updates; today issued it's California Foreclosure Report. March data indicates California's foreclosure crisis is accelerating and suggests that the normalization of the state's real estate market is still far from complete.
Ensynch Named ?Economic Engine of Arizona?
IT infrastructure services and staffing firm recognized by Arizona Business Magazine for helping drive State?s economy
Does Your Golf Swing Look Like Mine? - Part one
There you are standing on the first tee with your friends who have persuaded you to join them for a round of golf.As you are a beginner and don't even have your own set of clubs they have put together a set for you to use on the day. Walking out onto the tee you look around you at the view and in the distance your partners point out the flag in which direction you are expected to hit the ball when its your turn to tee off.
California Mediators Demand that the Legislature Stop Feeding Mediation Funds to Deep Pockets
Mediators are Demanding that the California Legislature Stop the Diversion of Mediation Funds to those with Deep Pockets, for example, insurance companies, big business and well-off individuals. The legislature's intent when it enacted the law was to use the funds for pre-litigation disputes to fund community based mediation programs and encourage greater use of alternatives to court.
Arizona Blue-Gunfighter: The Rooming House [Chapter Four]
Arizona Blue-Gunfighter
The Rooming House
[Chapter Four to: Mexican Stand-off]It was a long day; Blue went to the Boarding House to get a good sleep. The Sheriff introduced him to everyone in town, as if it mattered, it was more for letting everyone know what Blue looked like, for few did, only his reputation preceded him.
The Golf Swing - Driving The Ball
Some think that driving the golf ball is a simple process, it really isn't. Some seasoned golfers just look at driving the ball as a simple process. "Grip it and rip it" is a common phrase you can hear on many tee boxes. However, there are some things you can do to get more distance on your drives.
Fun-Filled Florida Vacation Attractions
Florida, the Sunshine State, is home to much more than just beaches. The entire state is a wondrous place filled with numerous attractions for vacationers.
Real Estate Advantage™ Receives Certification for Microsoft Dynamics CRM 3.0
Real Estate Advantage™ is a specialized commercial (office, retail and industrial) real estate solution for property owners, asset managers, brokers, and leasing and servicing agents.