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. Find out how.
There are a number of powerful tax benefits that come with investing in real estate. It’s likely the number one benefit that are the massive deductions. Why do apartment investors get all of these great tax benefits? It’s because of government incentives.
Using opportunity zones to re-invest our unrealized capital gains into projects that help local communities, we can defer and sometimes eliminate taxes on capital gains. Opportunity zones are designed to spur economic development and job creation in distressed communities.
This accounting expense can seem almost magical, but as assets tend to wear out over time, we can account for that reduction in value, deducting the cost of an asset over its useful life. Contrary to popular belief, depreciation does not fully eliminate the need to pay taxes… But it can delay them substantially and there are great benefits along the way.
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 used to report income, gains, losses, deductions, credits, and the K-1 lists the beneficiary’s share of these incomes, deductions, credits.