Chapter 18

Looking at Tax Considerations and Exit Strategies

IN THIS CHAPTER

Bullet Mastering the tax advantages of real estate investing

Bullet Exploring tax-deferred exchanges

Bullet Understanding new tax perks tucked away in the 2017 Tax Cuts and Jobs Act bill

Bullet Looking into other exit strategies

Real estate is a great investment that offers you the opportunity to leverage a small cash investment to own and control large holdings that generate cash flow and can appreciate significantly over time. But cash flow, leverage, and appreciation aren’t the only advantages of real estate. Utilizing current real estate tax laws has always been a key benefit for real estate investors.

Applying tax strategies properly allows rental real estate investors the ability to shelter income and even to eliminate — or at least defer — capital gains. Success in real estate, like all investments, is generally determined by how much money you keep on an after-tax basis. Real estate offers the potential to minimize taxation, so real estate investors need a thorough understanding of the best techniques to optimize their financial ...

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