When you invest in real estate through a fund, not only do you get to enjoy substantial tax perks, but you also benefit from the professional management and diversification that Elevest Capital brings to the table. Let’s dive into the awesome tax advantages you can tap into when you invest with us!
Depreciation: Your Shared Tax Shelter
When you invest through a real estate fund, you still get to enjoy the powerful tax benefits of depreciation.
- How It Works: The fund owns the properties and depreciates them according to IRS guidelines. These depreciation benefits are then passed on to you, the investor.
- Impact on Investors: This reduces the taxable income reported by you, lowering your tax liability even as you receive income distributions from the fund.
Interest Deductions: An Indirect Benefit
Interest on loans taken out by the fund to acquire properties is deductible, which indirectly benefits you.
- Fund-Level Deductions: The fund’s interest expenses reduce its taxable income.
- Investor Impact: Since the fund’s taxable income is reduced, the income distributed to you is lower in taxable terms, reducing your individual tax burden.
Pass-Through Tax Deduction: A Big Bonus
Many real estate funds are structured as pass-through entities like LLCs or partnerships, which can be a big win for you.
- Eligibility: As an investor, you may be eligible for a 20% deduction on qualified business income under the Tax Cuts and Jobs Act.
- Application: This deduction applies to the income distributed by the fund, offering significant tax savings.
Maximizing Your Tax Benefits with Elevest Capital
Investing in real estate through a fund allows you to leverage significant tax benefits while enjoying the added advantages of professional management and diversification. At Elevest Capital, we are committed to ensuring that our investors reap these benefits through strategic fund management and tax planning.