Real Estate Income and Deductions

For many, many years, real estate has been one of the great bastions of tax planning. Real estate offers many of the same tax benefits as owning a business. It also offers the opportunity for tax-deferred growth—often for decades at a time and with no requirements that would force you to recognize the gain. Under current tax law, real estate also offers the opportunity to report losses on a tax return while maintaining a positive cash flow to the owner.

There are also many nuances in the tax law related to real estate, which can make it confusing and difficult to get your tax planning and reporting right. However, once you understand the strategies contained in the chapters of Part V, you will be well on your way to fully harnessing the tax-saving potential of real estate ventures.