Are There Tax Advantages to Investing in Real Estate?

There are tax advantages to investing in real estate. Probably the largest value is that you can depreciate the property both for real estate under section 1250 of the code and personal property under 1245 of the code. By having those depreciation deductions, you can create cash flow that is not taxable and distribute it out to yourself as opposed to leaving it in the real estate entity.

© 2014 Parsonage Vandenack Williams LLC

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