Tax Implications of Passive Apartment Investments [1 min read]

You have a legal responsibility to pay the minimum taxes required of you. The IRS does not let you deduct gambling loses but you get TAXED if you win. So don’t speculate – invest with proven strategies and knowledge!

Due to the legal tax benefits that surround real-estate investments, there are advantages to owning property; this includes owning shares in a large property. It is possible to offset gains in real-estate returns and potentially pay little to no tax on the cash-flow from your investment. 

These benefits are passed to investors that hold equity through:

• Cost segregation
• Depreciation recapture
• Bonus depreciation

Your cash returns in an apartment deal as a passive investor are eligible for tax benefits that help you keep more of the money that you make. The benefits to these strategies are unlike gains that you receive in a stock trade that you will be TAXED on because these gains are legally offset due to legal accounting practices.

Accountants specialize in different types of tax so it is important to have someone on the team that is familiar with accounting practices that expense items & effectively maximize the amount of money kept in each deal. Many assets that have a useful life of over one year can potentially be eligible for tax depreciation and must be effectively categorized, tracked, and expensed.

These strategies are very beneficial as a stock that makes 10% is not equal to an apartment deal that makes 10% when you factor in the tax implications.

Conclusion

If you plan to own your own property, make sure the accountant that you hire is familiar with the accounting practices that will enable you to keep more of your hard earned cash!

If you have more questions, my book "Single Seat Investor" is available on Amazon Prime. This book contains a no-fluff approach to give you answers to your questions in short and concise format with additional downloadable material to educate yourself.

Buy the book here on Amazon Prime and start your path to financial freedom and WEALTH today!

Please feel free to comment or contact me HERE with any questions.

Disclaimer:

I am not an accountant or tax attorney. Please use this info as a guidepost to increase your knowledge base and ask the right questions when you are considering an investment. The reader does not hold Viper Ventures LLC, Dominic Teich, or any of its affiliate websites, properties, projects, deals, or investors liable. Dominic Teich and Viper Ventures LLC are professional property investors but this content is for informational purposes only. This information is not official or professional advice on any matter. Viper Ventures LLC blog contains opinions and views of the author and owner as well as historical reference points from past investments. This content is not an official statement of an agency we are working with. As the legal owner of this blog, Viper Ventures LLC and Dominic Teich reserve the right to change how it is maintained. It is the authors sole discretion to change the overall content and focus of the blog. The nature of the Viper Ventures blog and website is informational only – the projects listed and information contained herein are just a past historical reference and do not indicate any projected, guaranteed, or promised gains. These projects are not listed to raise money for future offerings as those offerings must be approved by the securities and exchanges commission (SEC).

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