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Real Estate Investment News & Blog

[VIDEO] How Real Estate Investors Can Reduce Taxes and Pay the Minimum

  • Taxes will be the biggest expense you will pay in your business and personal life.
  • Taxes will prevent you from taking more money home and putting it into your bank account.
  • Taxes will eat away at your wealth.

One of the best ways to reduce your taxes is to be in business.

reduce your taxes

Taxes are eating away at your wealth.

Investing in real estate is not the same as “being in business.”

When you invest in real estate, you can take certain deductions, like depreciation, and there are certain other tax benefits, but if you want to take the most deductions allowed by law — almost 150 of them — you need a small business corporation.

And there are many more deductions available with a C-Corporation than with an S-Corporation or LLC.

So if you’re a real estate investor, you need a “business.” It could be:

  • A property management corporation, or
  • A property finding corporation, or
  • A property marketing corporation, or
  • A (fix and flip) contractor corporation

So start thinking about how you can reduce your taxes by “being in business” so you can take the maximum deductions and put more money in your pocket.

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About the Author...

William Bronchick, J.D. is a nationally-known attorney, author, and speaker. He has been practicing law and investing in real estate since 1990 and has been involved in over 2,000 real estate transactions.

Bill has served as President of the Colorado Association of Real Estate Investors since 1996. He is the author of many excellent real estate investing courses.

You can visit Bill Bronchick at his web site: LegalWiz.com

Comments

  1. Jimmy says:

    Thankyou. I needed to see this little segment. Up to this point I have just been a sole proprietor with 3 rental properties. The whole while I have been thinking in the back of my mind what can I add and how can I add something more than just the rental income… like some kind of supplemental business to go along and increase my bottom line. Now I am going to start a c Corp and focus on one of the services I already provide that is involved with my rentals as my main focus is to acquire more.
    Now the main question is will my c Corp really be worth of the cost of starting bc I could start that same supplemental business just as I am as a sole proprietor. And I’m not a millionaire so are the tax savings worth the extra costs? And is my supplemental business going to really make me enough profit to even cover the costs of starting the c Corp? My goal is to make more and more residual income through rents not really to grow a service based business. I would rather be able to either sell all of my properties or if I decide to keep them I would hand them over to a property manager at some point.
    Just some thoughts idk…

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