There’s nothing more annoying than paying taxes.
It’s something millions of Americans have to do on an annual basis much to their frustration.
Countless hours are wasted making sure to comply with a byzantine set of regulations.
According to estimates from the Office of Management and Budget, Americans spend over 6 billion hours annually filling out tax forms, learning about new tax regulations, and maintaining records.
Just imagine what Americans could do with that time if they didn’t have to navigate such a complicated system of taxation.
They could be building businesses, investing in productive projects, and putting that time and money to better use in the private sector…..
…you know the stuff that actually grows an economy. .
The funny thing is that for most of US history, the country never had an income tax. Despite not having an income tax, the American economy chugged along just fine.
This would come as a shock to most people who have gone through a regime-approved history class.
However, for those who actually study history, they know that taxation was much simpler and less intrusive well over a century ago.
Alas, those times are long gone. We must adapt to our new reality.
Despite the byzantine tax system that Americans must navigate, there is a silver lining.
Due to societal necessity of having housing, real estate investors are ultimately rewarded by the government for providing other people with a roof to live under.
Real estate investors are specifically rewarded with favorable taxation.
You see, for the normie worker in America, taxes are usually the single largest expense in their lives.
But if you’re an income property investor the whole game changes.
Income property is the most tax-favored asset class in America.
For example, depreciation is the holy grail of tax benefits due to how it’s a non-cash write-off.
Remember this, when you buy an income property, it’s not made up of just one component. It’s made up of both land and improvement — i.e. the house or building. In essence, the IRS says that the improvement or home is an asset that will eventually be worthless.
Per the current tax laws, nearly all funds an investor directs towards the maintenance or improvement of an investment property can also be tax deductible.
That’s the beauty of income property investing.
It’s what makes people’s financial lives so much simpler and more lucrative.
Brandon Hall, CEO of Hall CPA, is one person who knows these benefits all too well.
The sad truth is that people spend very little time learning about the tax code and how they can potentially benefit from it.
He joined our very own Jason Hartman to share various strategies that you can use to significantly lower and even eliminate your tax bill through short-term rentals and the passive activity loss rules of Section 469.
Make sure to check out Jason’s video interview with Brandon Hall below:
P.S. At Empowered Investor Pro, you’ll learn more about the tax benefits of income properties.
It’s one of the many perks, among others, that comes with being an income property investor.
To be successful at a certain craft, you must learn from the best.
Empowered Investor Pro has some of the best and most experienced income property professionals in the nation.
This online network is oozing with knowledge that will take your income property portfolio to breath-taking heights.
Ready to level up?
Sign up for Empowered Investor Pro here:
