People become more rich if they know how to use money to make money.
Real Estate and Stock is the most important two investment vehicles people use.
Benefits for Real Estate Investment Vs. Stock are:
Good leverage ability of bank money, you can use 10-20% down payment but control a larger asset
Safer to invest large amount of money
Achieve both appreciation and rental income
Good property can be a long term asset or easy to liquidate
Real Estate follow market rules better than pure speculation
But, people always say it’s very hard to find good investment property. But statistically 80% of normal people make their fortune through real estate. Main reason for people to fail is not because of timing but more on the execution part.
We feel good real estate is always there, but need an eye to find it and put into action.
So we are here to help our customer locate those property with investment potentials for:
Other special purpose like office, elder-care home, hotel etc.
We are targeting to build the real estate asset pro-folio for our customer from small to big, from simple to complicate, from single to balance.
We help customer consistently and systematically invest instead of a one time shot.
We have successfully doing this over 10+yrs.
We watch market all the time and directly involved in the local trends.
We know the power of both timing and time.
We really enjoy to see our customer to better allocated their asset and become more success.
Real estate investor Tax resource
All info here is from internet and readers to verify with CPA.
Several tax aspects for investor: capital gains (long/short term), 1031 exchange, set-up in basic rule, depreciation, Operating-expense deductions, pass-through entities and carried interest, change to individual income tax and mortgage interest deductions.
Tax Cuts and Jobs Act (TCJA)
Reduced Tax Rate
lower of the corporate tax rate from 35% to 21%
2% decrease in taxes per income bracket.
The lowest tax bracket drops from 15% to 12%, while the highest taxable bracket drops from 39.6% to 37%. For higher income families, i.e. the top top earning 20% of individuals, the after tax income will increase by an estimated 2.9%. However, approximately 90 – 95%of individuals will still receive a 2.2% increase in their after tax incomes.
The standard deduction changes from $6,350 for an individual to $12,000. Additionally, the joint filing increases from $12,700 to $24,000 in deductions. However, it is important to note that the Act does eliminate the previous $4,150 deduction from income for each individual claimed on a tax form.
The list of available deductions is quite lengthy, however it includes:
Medical Expense Tax Deduction. — This deduction allows taxpayers to deduct approved medical expenses that are 7.5% or more of their listed income. Previously, only Seniors had the opportunity to deduct 7.5 percent.
Property Tax Reduction. — With the new tax law investment property taxes can be deducted up to $10,000. It is important to note that taxpayers must choose either property taxes or income / sales tax for their $10,000 deduction on state and local taxes.
Home Mortgage Interest with Greater Tax Deduction.
Limit the deductions on mortgage interest to the first $750,000 of a loan.
The interest on home equity lines of credit are no longer allowed to be deducted.
Interest of mortgage before 12/2017 can still deduct.
Increased Charitable Donations Tax Deduction Limit.
Charitable contributions can be written off from 50% to 60%. Higher income earners can use this to lower tax bracket
On December 22, 2017, President Donald Trump signed the Tax Cuts and Jobs Act. Homeowners also are no longer allowed to deduct property taxes on their homes to the extent that state and local taxes, including property taxes, are more than $10,000