Jon Baron’s Post

Not only does real estate investing boost your wealth and make it cheaper to borrow money, but it comes with numerous tax benefits. You can make dozens of standard deductions to lower your tax liability yearly in addition to the tax deductions when you buy or sell an investment property, such as those for closing costs. What closing costs are tax deductible for a rental property? https://lnkd.in/dEJPEhsF

Taxes are one of our biggest expenses. There are many strategies you can use to lower them: Tax deferred accounts Roth IRA (Backdoor, Mega Backdoor) Tax loss harvesting Real Estate Roth Conversions Learn about them. They will save you money long term. Knowledge is power 😁

Estate Taxes: While not directly related to 1031 Exchanges, it is important to understand the estate tax implications of deferring capital gains through 1031 exchanges. One thing to consider is how heirs may benefit from a stepped-up basis, potentially reducing or eliminating capital gains tax liability upon inheritance.

Reduce your Capital Gains Tax bill by splitting assets with your other half One possible way of reducing this tax bill, is by giving an asset away to your spouse or civil partner or splitting it with them. By doing this, both of you are able to use your individual CGT allowance and reduce the amount of tax payable overall. Such a transfer must be on an outright and unconditional basis. #financialplanning #capitalgainstax #financialadvice

Use 1031 Exchanges to Defer Taxes. Roll over the gain from one property into another and defer your capital gains taxes. Buy Larger and Larger Properties Use the capital from your smaller properties to invest in bigger ones, continually deferring tax liability and increasing your income potential. Utilize the Step-up in Basis Plan for the long-term. At the time of your passing, properties can be transferred to your heirs tax-free thanks to the step-up in basis. Key Takeaway: With the right exit strategy, you can not only minimize capital gains tax in your lifetime, but your heirs can also inherit your wealth without a hefty tax burden. #realestateagent #realestateinvesting #taxtip #1031Exchange #realestate #1031qi #CapitalGainsTax

💼 Day 5: Tax Benefits of Real Estate Investing! 💼 Did you know real estate offers unique tax advantages? From deductions to depreciation, investing can mean big savings. 💸 Always work with a tax advisor to make the most of these benefits! #TaxSavings #RealEstateInvesting #WealthBuilding #KellerWilliams #FinancialTips #KWRealEstatePlanner #Artofthesale

📚 Capital gains tax applies to any capital gain realized on the sale of a seller’s rental/investment property or non-principal residence. Capital gains tax would not be payable on closing but would be paid by the seller on their next income tax return. Only half (50%) of the capital gain is taxed at the marginal rate. #wordsoftheweek #realestate #localrealtor #ontariorealestate #southerngeorgianbay

Maximise tax savings on your rental income with our comprehensive guide to landlord tax and allowable expenses! 🏠 Learn how to minimise your tax liability and make the most of your investment property. Check out our article for expert insights and tips - https://lnkd.in/eAbAYMP2

Struggling with 'Capital Allowances' as a Property Landlord? It's a way to claim tax relief on tangible capital expenditure. Don't let tax rules stress you out! Visit our website to book a free consultation. Let's manage your property tax effortlessly. #LandlordTax #FreeConsultation🏢 👉🏻banksco.co.uk

Reduce your Capital Gains Tax bill by splitting assets with your other half Selling an asset may mean you need to pay Capital Gains Tax (CGT) on any gain you make. Find out how splitting your assets with a spouse or civil partner, along with other strategies, can help you get on top of CGT: https://orlo.uk/fwjcI #TaxPlanning #FinancialPlanning