If you have REAL ESTATE investments, you are likely MISSING this tax savings.
ELEVATE YOUR CAP RATE via this tax loophole!
Everyone likes the tax benefits of real estate, but few talk about this huge one that is more relevant NOW than EVER.
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1) For tax purposes, real estate costs are deducted over the useful life of the property.
All that means is if you buy a $1M property, you don’t get a $1M deduction the year you buy. You take it over 27.5 or 39 years depending on property type.
2) If you think about in terms of net present value, you will eventually deduct the full $1M, but it’s spread out for decades, significantly diminishing the tax benefit.
Did you have a business that you worked from home for?
Here's how to deduct expenses related to your HOME OFFICE.
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1) You do not need a business entity (LLC, Corp, etc) to take deductions for your home office. You just have to be engaged in a profit seeking activity.
If you have a business - even a small side hustle - you just need to meet the following two requirements:
2) Space in your home should be used as:
- The principal place of your business.
- Used regularly and exclusively for your business.