If you are investing in real estate for the first time then here are some tips and tricks you could follow for tax-free investments provided by HomeUnion. The number of individuals that are entering the world of real estate continue to increase with their eyes set on choosing properties such as condominiums and single family homes.
Real estate has proven to be a great option when it comes to investment but aside from that, it can also be the best choice if you want tax-free investments. The money that they are able to save from taxes are better spent on additional property investments. If you want tax-free investment then here are three effective methods you could use to get more from your investments.
– Borrow investment money using loans that are tax free. You should know that one of the best thing about real estate is that you can easily borrow money from it. If you want to borrow cash from the bank then you can do so through refinancing and the end result would be you paying the debt without added tax. The good thing about it is that since it’s a tax-free loan, you will get the real estate property as well as the tax deduction that comes with it.
– Use the method of 1031 exchange. If you want to make sure that your cash flow will not be deducted by taxes, you could use the strategic method of 1031 exchange. With this method, you will be able to buy your second property from the market without the need to pay tax when your first property is sold.
– If you want to make sure that you are not charged of any tax bills, add the depreciation and debt together with the 1031 strategy. This will shield not only your cash flow but your gain as well. To achieve this tax free exchange, you must hire the best tax adviser. With this method you will be able to retain the gain from your investment without taxes and you may also buy another property using the cash provided by the bank.