Lower Your Taxes - Real Estate Secrets To Tax Free Income
Sometimes Tax Season is so painful.
Has this ever happened to you... You get to the end of the year and your Mutual Funds all lost money and yet you STILL end up paying taxes. Doesn't seem fair.
AND when it comes to tax deductions... with stocks and mutual funds the only write off you get is your losses - and even that can only be used against stock and fund gains.
How often have you thought to yourself, "Wouldn't it be sweet to get cash flow and an annual tax deduction from a single investment?"
Think of it... one investment that offers you the best of both worlds.
Does such a thing exist?
I have good news, because this beast does exist and the wealthy have based the core of their portfolios on just such investments for decades.
Direct ownership ownership of Commercial Real Estate is the key and Depreciation is the tax write off you are seeking.
AND I guarantee you this is information your Stock Broker is completely unaware of and wouldn't want us to be talking about.
Here it is... the single best tax write off in Investing... When you are the direct owner of Commercial Property you can take the property's Cash Flow as Income AND use Depreciation to write off tens of thousands of dollars of that income Every Single Year.
Depreciation makes a generous portion of your income from the property Tax Free.
Here's how it works... Commercial Property is depreciated over a 39 year tax life. What this means is each and every year you can write off one thirty ninth of the value of the building(s) on the property against your income for the year.
This write off is leveraged too... Here's what I mean by that. You get to deduct 1/39th of the Entire Value of the property, not just the cash you personally invested in to the project.
As an example... If you invested $100K cash in a $500K Commercial Property, Depreciation allows you to write off 1/39th of the full $500K - not just the $100K you put into the project. This equals $12,820 you can deduct from the income your property spins off every year for 39 years in a row if you wish.
And you can boost it from there... You can choose to "Accelerate the Depreciation" and produce an even bigger write off.
Certain components of your Property can be depreciated over a much shorter tax life giving you an even larger deduction. The technique is commonly called Cost Segregation.
It works like this... Certain portions of your Property have a tax life of five, seven or even 15 years.
A Cost Segregation Consultant will perform an inventory of your property detailing the breakdown of components with their various tax lives. You can then accelerate the depreciation on those components with tax lives shorter than 39 years and Bingo ... an even larger Depreciation Deduction.
Accelerated Depreciation is totally painless, is completely accepted by the IRS and gives the already generous Depreciation write off a major boost.
At Tax Time it is important to remember... 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.
Direct ownership of Commercial Property has such unique tax advantages and safety that Commercial Real Estate is a core holding of the wealthy. And Depreciation is just one of these advantages.
You can use the unique tax laws governing Commercial Property to completely avoid Capital Gains taxes and pull 100% tax free money out of your property as well. But those are topics for future articles. Stay tuned.
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Learn Insider Secrets of Commercial Property Investment from Monte Lee-Wen who has personally purchased over $150M in Commercial Real Estate. VISIT HIS WEBSITE NOW for Instant Access to the 14 page FREE Report "35 Reasons You Should Invest in Commercial Real Estate". http://www.investortours.com
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