In general, passive losses cannot be deducted except to the extent that they are offset by passive gains in the same year.

Take advantage of two tax saving strategy - Depreciation and Exchanges, for your next unvestment property.

Most people have a finite amount of money to invest in real estate. Whether it’s strictly for the financial gain or you’re just someone who loves the chase of searching out the next great real estate deal, you’ve probably already discovered that taxes are the bane of your success.

If you have money parked in a conventional IRA, while you are worrying about becoming financially secure or debt free, consider forming your own Real Estate Investment Trust or limited liability corporation and USING ITS MONEY TO PURCHASE YOUR OWN CAPITAL ACCUMULATING REAL ESTATE INVESTMENT.

If you buy a stock, make a profit, and sell that stock, you¡¯ll likely pay a capital gains tax on that profit. People say, ¡°I don¡¯t want to do this real estate deal because if I sell the property, I¡¯m going to make a lot of money and pay a lot in taxes, so I¡¯m not going to do real estate.¡± I have a different point of view.

Tax incentives for real estate investors can often make the difference in your tax rates.

There are many different types of investment real estate: rental houses, apartments, vacant land, commercial buildings, industrial, shopping centers or warehouses.

They all offer big tax incentives for investors who understand those benefits.

Thinking of trading up on an investment resort property? If so, look into 1031 Tax Exchanges (based on IRS Code Section 1031), which allow taxpayers to defer taxes on capital gains resulting from the sale of investment real estate, often a sizable sum since combined Federal and State taxes can run as high as 38 percent.

In the following sections we will review some of the areas that you must consider when researching and evaluating tax sale properties. I call them due diligence areas #1 through #5. These are not an exhaustive list but they do set out some of the areas which are typically left out of most people's analysis.

We have all heard the stories and heard the claims about tax foreclosure sales. You know the stories where someone purchases a house or property for $1,000 dollars with a true market value of $50,000. They then turn around and sell it for a huge profit. In fact everywhere I turn someone is talking about the wonderful purchase opportunities that tax sales and tax liens can hold. Before I started investing in tax sales my first question was, ¡°If this is such a great investment technique, why is it that I have not heard about it? There had to be a catch, something that no one was telling me about this technique. The truth is that you can gain a very favorable return by purchasing tax lien certificates and tax deeds, but as with everything you need to learn from other people's knowledge, use common sense, do your research, and stay positive!

Under Section 1031 of the Internal Revenue Code, owners of real estate held for investment or use in a trade or business can swap their property tax-free for "like-kind" real estate. Exchanges are made for people wanting to stay invested in real estate, increase their leverage and to avoid paying hefty taxes upon the sale of property...

Tax incentives for real estate investors can often make the difference in your tax rates. Deductions for rental property can often be used to offset wage income. Tax breaks can often enable investors to turn a loss into a profit.