Tax Advantages

• Mortgage interest is tax deductible.
• Real estate taxes are tax deductible.
• Local tax benefits are available in many areas.
• You can enjoy tax-free gains up to $500,000 from the sale of a primary residence that you have occupied for two of the last five years if you are married and filing jointly. If you are single or married and filing separately, you can enjoy tax-free gains up to $250,000. Moreover, you can use the exclusion as often as you meet the qualifications.
• 1031 Exchanges for investment purposes.
• Also placing real estate in trusts, LLC or LC’s have other tax advantages as well. Please refer to an attorney and tax consultant to educate yourself with this issue. Choose a wise attorney who also invests in real estate.

• You build equity over time, which you can take out in cash when you sell your home or invest in other real estate to build up your equity.
• You borrow someone else’s money to purchase your investment. The banks want us to borrow as long as we show that we can handle our money. If you can handle where your money goes, then you can be a wise investor in real estate. Check with your financial advisor if you are not educated in this area. Make sure that when you do, that they invest in real estate as well.
• The profits from home investments are often greater than from many other forms of investments unless you educate yourself to those other ways of investing like in options, stocks or owning your own business.
• Because you can borrow against it in most states, home equity can be a source of emergency funding. You can’t borrow as much on stocks as you can on your own home.
• Land appreciation adds to the value of your home.
• For many, home ownership is an important part of retirement planning.

• You gain more living space.
• You enjoy the satisfaction and pride of home ownership.
• Home ownership, for many people, is a sign of independence and achievement.
• As you buy investments, your equity and assets grow, your wealth increases.