Taxes are KILLING ME!

[Joyce Corbin]

I desperately need to purchase a rental property to reduce my taxes. Finally to the point where the cash flow is good but taxes take a huge chunk. Not sure where I start because I want to retire within the next year or so. How does/will retirement affect my being able to purchase investment property? Once I retire, I want to be able to have income generated to replace at least half of my salary then the pension and social security make up the rest. The area in which [DC/MD/VA] I live is quite expensive for investing so I'm considering a seasonal rental property at the NC/VA beaches. At least that way I conceivably could be a snow-bird and winter there. All thoughts and suggestions are welcome!

[Greg Scott]

"Finally to the point where the cash flow is good but taxes take a huge chunk."  

This one sentence implies you have rental real estate, and if you are paying taxes on your cash flow, one of three things has to be true:

1. You have owned them for a very long time so have used up all the depreciation
2. You paid cash or paid off the mortgage so the depreciation you have cannot possibly cover the cash flow
3. You have purchased an asset with very little that can be depreciated.  For example, you can rent farm land, but land itself cannot be depreciated.

In all cases, the solution is to sell (or refi) the property that you have and buy more cash flowing real estate with depreciable assets.  If you do it right, you should be able to dramatically increase your cash flow while also reducing taxes.  There are many ways this can be done, so choose your preferred asset and methodology.

If you are in a hurry, I'd suggest you check out Lifestyles Unlimited. With their Preferred membership you have access to dozens and dozens of syndications done by various members so you can deploy capital quickly and gain the benefit of both additional cash flow and depreciation as a limited partner.  There are other syndication groups out there but I've found Lifestyles to be the most beneficial to limited partners.