Ali Ata Talks About Tax Benefits of Real Estate Investing
If you ’ re looking for more reasons to invest in real estate, Ali Ata recommends looking into the tax benefits that you could get. Apart from the steady passive income coming from real estate, you also won ’ t have to lose a lot of your profits to taxes. Expense deduction Property owners can deduct expenses directly related to ownership, including property taxes and insurance, mortgage interest, and property management fees. You can also deduct the costs to maintain and repair the building. This rule also applies to advertising, office space, legal fees, and travel. As a result, you get less taxable income, saving you money. Depreciation Ali Ata explains that if you have a commercial property or one that produces income for a year or more, you can depreciate the cost over time by deducting the property ’ s loss in value over its expected lifespan. Don ’ t forget that this depreciation only applies to investment properties. Also, it won ’ t be a constant depreciation,