Potential deductions for real estate investors, or anyone operating a small business are:
- medical insurance
- family employees, employees, subcontractors
- annual meetings/retreats
- capital expenses
- equipment and furniture
- business travel
- meals and entertainment
- business board meetings
- job-related education
- legal and accounting fees
- office rents and utilities
- office supplies
- business gifts
- repairs and maintenance
- parking fees
- telephone, ipads, internet, office expenses
- professional dues
- postage and shipping
Keep in mind that these are typically paid with pre-tax dollars.
Here are a few reasons that Mark Kohler recommends investing in real estate:
- The tax write-offs are incredible when you treat it as a small business. You
may get to use those deductions against your ordinary income, but if not, they
will carry forward until you sell any rental property.
- The value of the property will grow tax deferred until you sell, and you may
even use other strategies to delay or avoid the gain entirely.
- The far majority of rental properties allow investors to create tax-free cash
flow based on the amount of write-offs related to the property.
- You can leverage your money to buy more ‘investment’ and thus increase
your ROI- Return on Investment (something you can’t do with stocks, bonds
or mutual funds).
- You can involve family members, travel to check on your rentals as a valid
business deduction, enjoy average appreciation and growth that out performs Wall Street, and a variety of other benefits.
- MOST IMPORTANTLY…it’s like a forced retirement plan.