YOU BUY COMMERCIAL REAL ESTATE FOR INCOME TAX BENEFITS…

YOU BUY COMMERCIAL REAL ESTATE FOR INCOME TAX BENEFITS…

?

PART I…

?

?

Time after time I have written and said that what we do in our business is to work with our clients to help them define their goals, their needs, wants, and desires and then we help them put together a real estate investment portfolio that will give them cash flow, appreciation, and some wonderful INCOME TAX BENEFITS so that they will be able to support themselves and their families for generations to come.? The interesting thing about all of this is that our clients love that they get cash flow and appreciation but the thing that they really want is the income tax benefits!!!

?

And there are a number of different ways that investing in commercial real estate can give you income tax benefits and some of those ways defer the income taxes on the gains or appreciation for years and years and even more years.?

?

Another way that investing in commercial real estate will benefit you is to either totally or partially eliminate income taxes on the gains.? Mostly we will discuss the deferral of income taxes, but you have to realize that the Internal Revenue Code was written to collect income taxes so that the government can operate on a day-to-day basis, and they need money every day.? So, they are not going to give you too many ways to totally eliminate the income taxes on any transaction.

?

Now, there are some intricately complicated ways that people, attorneys, and certified public accountants, have come up with to “eliminate” paying income taxes on certain transactions.? But the problem is that they are so complicated that they are also soooo costly to the taxpayer that they aren’t worth doing when you consider how much you are saving in income taxes.? I am not going to get into these schemes because the Internal Revenue Service and the Government and the Courts attack these schemes and win just about all of the time.

?

One thing that I will tell you is that the IRS targets these TAX SHELTERS and will send out bills to the partners about 2 or 3 months before the statute of limitations will run out and these bills are for the income taxes that the partners have not paid.? These bills are HUGE because they include the income taxes and they also include penalties and interest for years and years and years!!!? So, the taxpayer either has to pay that bill in a timely manner or sign an extension to the statute of limitations for a long time giving the IRS all the time it wants to delve into the scheme and collect all the money that is owed to them.? Then you have to hire a team of attorneys to defend you and that costs even more money.

?

So, we will not go into any of these TAX SHELTERS, and we will just be discussing the “normal” ways that we can either defer or eliminate income taxes through investing in commercial real estate!!!? Join me and let’s see the ways that the Internal Revenue Service, or Congress, has given us to get an edge on them.