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In this video, I'll explain how real estate investments can offer several tax benefits π€π°π° that can help you reduce the overall cost of ownership and potentially ππ΅ increase returns. If you like these quick updates on the market every day, then subscribe below. Subscribe to the weekly newsletter at thelimitedpartner.com/news.
You have to plan for and take action π€π€ now to take advantage of these. You can't wait till the year's over. π Deduction of mortgage interest. Maybe there's one benefit of higher π interest rates right now, but that is a good π benefit. Depreciation deduction. So unlike your personal residence, you can take a deduction π for investment in real estate π.
This is typically the biggest tax advantage of real estate. Capital gains tax exclusion. So if a property is held from more than one year, then the gains π are taxes capital gains, which are typically lower π than your regular income rate and a 10 31 exchange. So a 10 31 exchange allows real estate π investors to defer paying taxes on the sale of a property by using the proceeds to purchase a similar property.
Take advantage of these 2023.