San Francisco Real Estate - Residential

Three Tax Mistakes Real Estate Investors Make

Diane Kennedy is the author of the Rich Dad book, "Loopholes of the Rich: How the Rich Legally Make More Money and Pay Less Tax", has a website dedicated to the ever changing tax laws and how to take advantage of them.

Here is an excerpt from her latest e-mail newsletter.

"Here are the top 3 tax mistakes that I've seen over the years. In each case the mistake can be traced back to a failure to understand a crucial element of investing.

1. Failure to understand what TYPE of real estate investor you are. Are you a dealer, developer, professional or investor?
2. Failure to understand WHEN you bought or sold a property. With creative real estate financing and investing this can be tricky, and not as straightforward as you think.
3. Failure to MAXIMIZE the tax benefits of real estate. The loopholes are out there – but if you don't use them, or use the wrong type of structure to hold your assets, you can lose out on perhaps the most powerful real estate benefit of all - the tax savings!
   

Understanding what you're doing (and why it matters) is the subject of this week's What's Hot."

- Diane kennedy

posted by SFResidence.com @ 9:19 AM