Top 3 Benefits from the New Tax Cuts and Jobs Act for Real Estate!

The new Tax Cuts and Jobs Act became valid a bit ago, and we haven’t really talked much about it, however, it’s really important to get familiarized with it for the upcoming year, and what better way than to list the top 3 benefits from it that you could be missing out if you aren’t investing on Real Estate for what’s left of this year. However, if you wish to learn more about how taxes work in this business, we recommend you speak with a CPA that has worked with Real Estate in the past, they will become your best friend!

As with everything, do your own due diligence and prepare yourself as much as possible before you put your money down for something, this can be very beneficial but don’t do deals just for the sake of doing them, and if it’s your first time investing, you should work with an investor who knows what they are doing, as well as maybe try working with a Realtor who has invested in the past or worked with investors, their guidance could be key for you to make the right choices, and see the benefits next year.

Top 3: Business Equipment Deduction

As of this year so much has changed with this specific one, and it’s amazing for Real Estate Investors who work with rental properties because the spectrum of “business equipment” has broadened a bit, as it’s now covering more around roofs, HVAC systems, fire alarms and more, this allows for you to start clocking in some of these things you couldn’t before from your rental properties, so Investor, if you are onto this kind of thing, this one is for you! We currently work with single-family houses and have a few rentals, so we are pretty excited to be working with the taxes next year, is that normal?

Top 2: Pass-Through Deduction

This one is a good one for Real Estate investors, as for safety the investment should be made through a pass-through entity such as LLC, as this last-minute provision to the tax law made it so that you as an investor get to take a 20% deduction on passive income, which is amazing as investors we like to work with multiple properties, so at the end of the year you can take a 20% deductible of your gains, in the future this makes for a better way to invest, since you will be able to get more deductibles for next year, and new amazing investments!

Top 1: Corporate Tax Rate

The biggest change in the new tax law and the best one for investors is definitely the Corporate Tax Rate, as they changed the previous tax rate of 35% since the beginning of the year businesses will benefit greatly as they lowered to only 21%! This goes fantastic for smaller businesses such as smaller Real Estate companies, not having to worry too much about the tax rate is higher than what they can cover and be able to manage a better system in which it allows for them to invest faster without as much of a tax payment.

Once again, research as much as possible about this topic and see what other great benefits you can make from this new tax law, you still have time left of the year to make your new investments, and once again we would absolutely love to help you around that, if you want to, subscribe to our mailing list and receive our latest deals today!