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9.

UNDERSTANDING THE TAX RULES FOR REAL ESTATE

Everyone who pays taxes knows that the rules seem to change continually and that forms, record-keeping requirements, and calculations can all be complex. In addition to having to contend with the same tax rules as everyone else, real estate investors have to be aware of some rules that apply just to them.

The good news is that most of these special rules are beneficial to real estate investors. For example, a sweeping tax reform in 1986 did away with the majority of tax shelters. Before that date, investors could deduct losses without specific limitations and were able to avoid taxes altogether in ...

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