1. Use Real Estate Tax Write-Offs
- Property taxes
- Property insurance
- Mortgage interest
- Property management fees
- Cost to maintain and repair the building
- Office space
- Business equipment (e.g., computer, stationery, business cards, etc.)
- Legal and accounting fees
2. Depreciate Costs Over Time
3. Use A Pass-Through Deduction
4. Take Advantage Of Capital Gains
A capital gains tax may be assessed when you sell an asset, like a piece of property, for a profit. There are two types to be aware of: short-term and long-term. They each impact your tax situation differently.
Short-Term Capital Gains
Long-Term Capital Gains
5. 1031 Exchange
6. Opportunity Zones
- Defer paying capital gains until 2026 (or until you sell your stake in the fund).
- Grow your capital gains by 10% if you hold the fund for 5 years; 15% for 7 years.
- Avoid paying capital gains entirely if you remain invested in the fund for 10+ years.