Real estate is still one of the very best legal tax shelters available. So how can more Long Islanders leverage the tax saving benefits of real estate despite sky high local property tax bills?
Most are finally breathing a sigh of relief after getting their federal income taxes filed. Still, there are many individuals that wish they were handing over less to the tax man. Or were in line to receive a bigger tax refund check next year.
Investing in real estate can be a great tool for both minimizing taxes, and buffing up income and wealth gains. Real estate offers many natural tax breaks, as well as opportunities to legally reduce tax further. That means keeping more of what you earn, and even potentially earning more. This includes potential tax breaks for depreciation, closing costs, mortgage interest, improvements, and even tax credits, write-offs, and deductions for various operational items. This can all be compounded and made better by using self-directed retirement accounts for deferring taxes, or enjoying tax free returns on investing in real estate.
Of course Long Islanders face the challenge of battling notoriously high property taxes. On the surface this can appear to eat up a lot of the potential benefits of investing in local real estate. Long Island’s equally high property prices and rents can help offset this. It is also important to note that the main problem facing LI real estate investors and home buyers is not property tax rates, but incorrect property tax bills and overblown bills.
Some may be able to take a page out of developers’ strategies and get major tax breaks signed off when investing. All can tackle erroneous tax bills with the help of a local property tax adjuster. A professional property tax adjuster can help ensure tax assessments are corrected and challenge bogus bills.
Then with this savings on current homes and any investments, Long Islanders can boost tax protection by investing in more real estate here, or where property taxes are cheaper.