Real estate investors can leverage several tax strategies to maximize savings:
- Depreciation Deductions: Claim depreciation on rental properties to reduce taxable income.
- 1031 Exchanges: Defer capital gains taxes by reinvesting in another property.
- Mortgage Interest Deduction: Deduct interest paid on investment property loans.
- Pass-Through Deductions: Qualify for the 20% QBI deduction if you operate as a sole proprietorship or LLC.
Implementing these strategies can significantly enhance your real estate investment profitability.
