If you have real estate, you have probably spent money getting it in order and you can take advantage of tax breaks to help offset some of those costs. While there are many benefits to real estate for your taxes, these are a few of the most common ways that you can use your real estate to save you money during this tax season.
Real Estate Tax Breaks You Can Take Advantage of This Year: 1031 Exchange
A 1031 exchange is a tax break involving the exchange of like-kind properties. In this case, like-kind refers to properties that are real properties, and actually, most properties can qualify. The properties being exchanged must be being used for investment or business use for the exchange to count. Trading one piece of real property for another would qualify as a 1031 exchange and would allow you to take advantage of the tax breaks that entails. Things like stocks and bonds are not considered real property and as such are not eligible for any 1031 exchange tax benefits.
Solar Tax Credit
In many areas of the country, there are actually tax credits available to people who purchase solar panels for their properties. The tax credit is worth 26% of the cost of your solar system. If you have put in solar panels, you should definitely take advantage of this credit as it can save you money and help you to get even more out of your investment in solar panels. This is especially great because solar panels will also save you money on your regular utility bills so solar panels really do end up being a win/win for the people who invest in them.
Real Estate Tax Breaks You Can Take Advantage of This Year: Rental Property Deductions
If you own a rental property or rental properties, there are many deductions you can make that will decrease your costs on your taxes this year. If you have an office at home that you use for managing your rental properties, you can deduct the costs you incurred to put together and run the office. You can also deduct mileage when you drive to check on rental properties. Keeping track of the money and time you spend on your rental properties can help you to figure out your maximum deduction and to make sure you get the benefits that you qualify for.
You may as well take advantage of any breaks and deductions you can each tax season. These real estate deductions can be a great place to start!
Read this next: How to Determine if a Rental Property is a Good Deal
See you at a meeting soon!
The Southwest Florida Real Estate Investment Association is the leading source of SWFL real estate investing events that provide investment education and networking in southwest Florida. We analyze the housing market and foreclosures and provide information, education and networking events in order to build a network and knowledge base for investors and potential investors. Our members include real estate agent, brokers, investors, hedge fund managers, rehabbers, wholesalers and more.
Our SWFL REIA General Meeting is held in Fort Myers where we provide education on hot topics in investing and an opportunity to enjoy the camaraderie of your fellow investors. You’ll get a chance to ask for advice from successful real estate professionals and even make a few deals on your latest projects.
To become a member, anyone can register as an individual, a couple, or a corporation. Being a member opens the doors for endless networking opportunities, advice from members with decades of experience, new ideas from entrepreneurs, camaraderie with those just beginning, and deals and contracts done in the meeting room. For those interested in Cape Coral rental property investment and/or Fort Myers rental property investment, SWFL REIA will be able to provide a network to help launch a successful investment career.
The SWFL REIA is known and respected as a source of current, actionable and useful information about the housing market in the area that we meet.
We meet twice a month.
One of the premier sources for real estate investing networking and education is the SWFL REIA. In the real estate world, the SWFL REIA is different in that they do not do information product sales. Their meetings are focusing on the best ways of investing in real estate by collaborating with other property investors who are sharing their experiences.
We look forward to meeting you at a meeting soon!
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