Real Estate Income Can Be Tax-Free
Much of the tax code for individuals is based on cash accounting, reflecting annual financial flows. Real estate, with its unique features like leverage, mortgage interest deductions, and depreciation, offers opportunities for strategic tax planning.
By setting up your business correctly, we aim to offset passive losses against passive rental income, allowing you to enjoy tax-free income for a significant period. While the government recovers some benefits when you sell, with the right ownership structure, much of this advantage can last a lifetime, gradually dissipating within your estate, without repayment.
This approach can also apply to foreign real estate investors, with attention to FIRPTA compliance through proper planning and record-keeping.
While eventually involving your tax attorney and estate attorney, we can help establish initial structures for tax-free income and safeguarding benefits until you’re ready to consult with your legal team.