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, these gains are legally offset due to legal accounting practices.

A competent and knowledgeable accountant will be able to expense items to 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.