Real estate investment makes you to reduce your tax

Taxes occupy the biggest estimate in your lifetime, so choose your source of income wisely!Real estate has so many tax advantages over wage income:

Capital Gains Rates

The federal tax rate on capital gains is 15%, whereas the wage tax is at 35%.Some states offer discounts on capital gains income. Capital gains hold a property for 12 months or more before selling and that it was for productive use .

Exemption for Principal Residence

When you sell your property, the first $250,000 is exempt from gain if you are married.

Interest Deduction

You must deduct interest you pay on debt that you have used to acquire your real estate.

Depreciation

For rental recidence, get a tax deduction for the “wear and tear” on the structure, even if the property increases in value.

No FICA Tax

Your income from real estate is general NOT subject to FICA tax withholding. Regular self employment income is subject to 15.3% tax on the first $97,000, and thereafter your earned income is subject to medicare withholding