Guest blogger Jacob Davis ends his Life, Death, and Taxes series with thoughts on Investing in Real Estate. Please contact our office with tax questions related to real estate investing. Thank you, Jacob, for providing this series.
This article is not about how to invest in real estate or the ways to go about it–it’s about taxes and what to expect when becoming a real estate investor. It may seem small, but in the grand scheme of things it can be your best friend or your biggest hurdle. Things such as the depreciation of property, rental income, capital gains on the sale of your investment, and even 1031 exchanges. All of these must be considered and discussed with your accountant when you begin to invest.