4 Benefits Of Real Estate Investing For Your Retirement Cash Flow 

Planning for your retirement? Are you getting closer to retirement? 

Here are 5 benefits of how to use real estate investments to create the cash flow you'll need.

The tax deductions you can claim for your real estate investment are one of the major financial benefits of this source of income. 

#1 DEDUCTIONS

The tax deductions you can claim for your real estate investment are one of the major financial benefits of this source of income. 

You can: 

• Deduct Property Taxes 
• Deduct Property insurance
• Deduct Mortgage interest
• Deduct Property management fees
• Deduct the Cost to maintain and repair your investment

There are many creative ways that investors use to deduct their expenses to the last penny!

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#2 DEPRECIATION

What is exactly depreciation?

 "In real estate, depreciation is the decline in a property’s value that occurs over its useful lifespan due to age, wear and tear, or decay"

Depreciation is a tax-deductible expense for real estate investors who own rental properties that generate income. As a result, you'll likely have a lesser tax liability and less taxable income.

Note: For the duration of a property's projected life, you may deduct depreciation (currently set by the IRS as 27.5 years for residential properties and 39 years for commercial properties).

#3 LONG-TERM-CAPITAL GAINS

If you make money from the sale of an asset that you've owned for a year or more, you'll experience a long-term capital gain. 

You'll be able to keep more of your earnings if you can hold off on selling until the anniversary of your purchase. 

This is due to the fact that long-term capital gains are taxed at a rate that is far lower than your normal income.

As an example,  

The fact that your income may be taxed at 0% because of a joint tax return on your retirement days…, it means that the long-term capital gains are tax-free. 

In other words, you get to keep every penny of the proceeds from the sale of your property.

Always consult a Tax Attorney about how to take advantage of Long-Term capital gain on your taxes.

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#4 TAX DEFERRALS INCENTIVE PROGRAMS (EXCHANGE 1031) 

The government occasionally creates a unique special tax code to encourage investors. 

Let's discuss opportunity zones of a 1031 exchange, a significant real estate tax advantage for home investors

What is the" Exchange 1031 Program"? 

The government wants to reward people who reinvest their real estate gains into new ventures, which is why 1031 exchanges exist. 

The program allows you to exchange them for tax reasons as long as the new property you acquire is of equal or greater worth than the one you sell. 

The capital gains tax on the sale of the first property can therefore be delayed. 

But, delayed until when?

Possibly, when you retire, and you are paying taxes at a much lower tax bracket! 

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Remember, 

You should not act or rely on any information contained on this website without first seeking the advice of an attorney. 

I can only help you find the right properties for you to invest, prepare reports and analysis for your intended purposes. 

And always keep in mind that there is no one-size-fits-all strategy for planning. 

Your particular circumstances and skills must be taken into account.

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Our commitment as your real estate professional is to help you find your dream home at the right timing for you.

It's the biggest purchase of your life, and can assure you that even small mistakes can be costly.  BEWARE, technology changes almost daily and I can help you pinpoint all the homes for sale near your location points. I have access to over 18 million properties from hundreds of locations, including Government  properties, action homes, VA homes, HUD Properties and all available private houses for sale in between.

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Fernando Herboso Broker 301-246-0001