| If the stock market, with its wild swings up and down | | | | With the bursting of the R.E. bubble and the massive |
| and it's inconsistency and dangerous nature have put | | | | drop in housing prices, you would be hard pressed to |
| you off of that form of investing, then you may be | | | | find a real estate investor who doesn't have massive |
| ready to take the leap into real estate investing. The | | | | losses. And that's where this strategy comes into play. |
| fact of the matter is that real estate investing can be | | | | If you owned real estate that generated losses in |
| a great way to add stability and growth to your | | | | previous years then you can invest in new income |
| portfolio and at the same time enjoys fantastic tax | | | | producing properties today. In many circumstances the |
| benefits that I'd like to talk about a little bit in this article | | | | new income that is generated today will be offset by |
| today. | | | | those losses that you held in the past from a tax point |
| It is true that tax reform has changed many of the tax | | | | of view. Be sure to talk to your accountant or CPA or |
| benefits that we used to get from owning real estate, | | | | tax lawyer before engaging in this particular tax |
| there are still many rather significant advantages in the | | | | strategy. |
| tax arena that continue to make these investments | | | | Another strategy is to aggregate your losses from |
| attractive even today in the crazy housing meltdown | | | | many different tax shelters not just the ones from real |
| that we're currently witnessing. | | | | estate. Most people don't realize that losses from a |
| One way to take advantage of the tax man with real | | | | real estate passive activity can usually offset income |
| estate involves past R.E. investments. This particular | | | | from any other type of passive activity. And the |
| plan is going to be very useful to many people who | | | | opposite remains true as well so if you are involved in |
| invested in real estate before the recession of 2008 to | | | | any sort of passive shelters like equipment leasing or |
| 2010. Why is that? Well frankly it's because many of | | | | R&D or things like that you can take advantage |
| those investors have lost an arm and a leg since then. | | | | of this tax benefit. |