Investment in the real estate is fast becoming a regular practice for all people, but unfortunately not many are aware of the various tax benefits that are attached to a real estate property. In the United States, recent improvisations have been made in the IRS which has made the investment procedure even more beneficial and investor friendly.
By these new provisions it is stated that it is possible to exchange certain eligible properties for a property of equal or higher value. This seems to be a revolutionary change in the investment world, and the best part about it is that you do not have to pay any tax on the exchange. Blake Rubin the highest acclaimed real estate attorney in America is absolutely proficient and excellent in his cases. He has been considered as an industry in himself, after witnessing his marvellous works related to real estate and partnership issues. He also holds the credit of exceptional mastery in tax structuring.
The IRS has been hugely benevolent and this appears more so for those who rent out their property, because being able to exchange for a larger property will obviously mean a bigger property to put out on rent and hence more income. There are further more benefits that particularly the rental property owners will get:
- Interest Expense – whatever interest you pay as a part of your expense on the rental property is liable to tax reduction. Hence, no matter what you spend on the rental capacity whether it is on your credit card or mortgage interest, you are sure to get a tax rebate.
- Depreciation Expense – you could deduct a portion of your property’s value over a span of a few years and then claim depreciation of your property. This is claimed as a deductible expense.
- Repairs – any renovation that is done on the property can be claimed under deductible expense, be it painting of the rooms or change of faulty lighting. However do remember that improvement of the property will not fall under this category, it strictly has to be repair work.
- Travel expenses – this is probably the best advantage for the rental property owners, they get paid for all the travel that they have to undertake for the purpose of the rental property. There are two ways of calculating this expense. They are: the direct way in which the actual expense made through the journey are produced in the form of receipts; and the other in which there is the standard mileage deduction. The latter one changes every now and then.
All these advantages can be availed, only when you know them in details and correctly, for that purpose you definitely have to take professional assistance. Blake Rubin is a top class attorney for any issues related to real estate as well as partnership, and one who can be trusted for this grand reputation of several years. His ability to superbly handle all such cases has been verified by Chambers USA, Legal 500 and many more. It is no wonder that his name is listed in the best lawyers of America.
