Tax

August 15, 2023January 17, 2024

Depreciation and Why it Matters

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.

July 13, 2023January 20, 2024

Opportunity Zones – How to Defer or Eliminate Capital Gains

One of the newest sets of tax rules available to us is the inducements around opportunity zones, calling for us to re-invest our unrealized capital gains into projects that help local communities. The US Government has established certain areas of the US that it wants to improve, and has implemented tax incentives to investors to help out by financially stimulating those areas. By participating in opportunity zone investment opportunities, we can defer and sometimes eliminate taxes on capital gains.

December 25, 2022January 17, 2024

Good and Bad News on Using a Roth IRA to Invest in Real Estate

One of the coolest things about using a Roth IRA for investing in multifamily commercial real estate is that you do not pay any taxes on any gains. This can be especially advantageous if your syndication investments are doubling in value every 5 to 8 years. On the contrary, using a regular self-directed IRA to invest in a syndication allows the investment to grow on a tax-deferred basis, but a Roth IRA can provide the potential for tax-free growth. The downside is that there are certain restrictions regarding taking proceeds (distributions) out of the Roth IRA. Using a Roth IRA for your real estate investments can be ideal, so let’s take a brief look, shall we?

October 31, 2022January 17, 2024

Tax Benefits of Multifamily Syndication

In addition to cash flow, capital preservation, and steady growth prospects, many passive investors find themselves gravitating to real estate syndication for another reason – the tax benefits! There are a number of powerful tax benefits that come with investing in real estate; it’s likely the number one benefit that we’ve noticed are the massive deductions.

Some of the most common deductions are:

September 15, 2022January 20, 2024

Start Here

So… You want to invest in real estate but your time is limited and you do not want to have to manage tenants, toilets and trash.

Many of us know that investing in multi-family real estate can be much safer than investing in the volatile stock market. We want to preserve and even grow our wealth, retirement fund or our nest egg.

January 30, 2022January 17, 2024

How to Read and Love a K-1 Tax Form

First of all, what is a K-1 Tax Form?

As part of an IRS income tax filing, the Schedule K-1 tax form is the annual reporting that you will receive from the sponsor in a multifamily syndication. It is similar in purpose to the Form 1099. The syndication LLC files an information return to report their income, gains, losses, deductions, credits, and the K-1 tax form lists the beneficiary’s share of these incomes, deductions, credits.

Category: Tax