What strategies are you using to minimize taxes?

[Sam Tright]

Since note dividends are taxed at the same rate as regular income, and there are no tax benefit like depreciation or mortgage interest deductions, I am looking back to real estate to help avoid keeping 63% or less of what I make.

I want to minimize real estate related headaches though. I'm good at note creation, I don't actually want to hold property or at least manage it.

For those of you in a similar mindset, what did you end up doing? I've heard NNN commercial properties are a good low hassle tax shelter. Problem there is a dollar invested doesn't get you that much yield in tax savings. It's relatively low leverage in that respect.

[Ned Carey]

@Sam Tright actually notes are taxed differently that ordinary income you do not pay SS tax on interest. (notes do not generate dividends they generate interest)

The best strategy fo you will depend on yor specific stiation. It sounds like you are in a high or highest tax bracket. So you have some options that those with less capital have.

Some ideas

1) Invest through your IRA or other retirement program. IRA and some other retirement plans allow investment in real estate.

2) Invest in syndications of other investors. They do the work, you get the tax benefits. 

3) Invest yourself in large enough assets that 95% of management can be handled by true professional management. I'm talking about $5 million assets plus. The level of management for this size assets is much better. 

4) use 1031 exchanges when selling