Business & Finance Renting & Real Estate

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.
Commercial Real Estate is depreciated using a 39 year tax life.
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.
Accelerated Depreciation is totally painless, gives the generous deduction write off a major boost and is completely 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.

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