I think you can interpret what I’m saying here. When you start investing in apartment complexes, you can expose yourself to needless risks in the form of tenant lawsuits. It is wise to do it the right way. Luckily, most syndications can offer several layers of protection.
Continue reading “Liability Protection – CYA – Cover Your Assets.”
Contrary to popular belief, depreciation does not fully eliminate the need to pay taxes… But it can delay them substantially.
The tax code favors real estate investment because the government, as one of its duties to its citizens, is to provide affordable housing. To do so, the government provides incentives to spur on this type of investment. One of the coolest things about investing in real estate is a little thing called depreciation. This accounting expense can seem almost magical, but it is rooted in the truth that since assets tend to wear out over time, we account for that reduction in value, deducting the cost of an asset over its useful life.
Continue reading “Depreciation and Why it Matters”