This real estate loophole reveals unknown profits

Nearly everybody can understand the basic methods of making money in real estate:

You buy a house for x… you sell it for y… you keep the profits.

But there’s a loophole that can access real estate profits in a slightly different way.

It’s what all the real estate pros are using, and they’re keeping it from the general public…

As you may know, real estate investing can be very profitable to those who know what they’re doing, but when you combine those profits with a MAJOR loophole—tax credits and deductions—it becomes a goldmine.

These tax credits and deductions are what the government pays you, but they aren’t made obvious to the common investor.

I want to introduce you to some extremely powerful tax credits and deductions that’ll ensure the government is paying you every penny you deserve.

Real estate investments seem like they belong to an elite group of experts. It’s set up this way so that your average Joe doesn’t see how easy it is to make a massive fortune from only a handful of real estate deals.

Anybody can jump into real estate investing at any time, and a lot of the time it takes barely any of your own money to get started—that’s what the banks are for.

But to expose how profitable real estate investing can be, here are a few of the tax incentives involved:

Tax Credit #1: Rehabilitation Credit

By claiming this credit, the government will pay you to rehabilitate a residential or non-residential property.

This is a fancy term for renovation, although it doesn’t have to be a complete rebuild for you to be eligible for this credit that could be worth up to 20% of your total investment.

To be eligible for this credit, you must invest $5,000 into your property within two years. This would be considered a standard amount for what you’d pay to renovate a property anyway—why not get paid to do it?

What makes this credit even more interesting is that if the building is in a disaster area, such as those impacted by hurricanes and other weather-related damages, your tax credit could increase up to 26%.

A lot of people miss out on this simple tax loophole because they’re uninformed, and the government gets away with keeping the taxpayers money.

Tax Credit #2: Residential Energy Credit

Keeping up with the latest environmental trend will not only make you feel good for doing your part in saving the earth, but it’ll also force the government to pay you a nice yearly sum.

By converting your investment properties to utilize solar energy, solar water heating, wind energy, and geothermal heat energy, you could receive a 30% tax credit.

Not only is this tax credit great for your wallet, but it’ll make your property more appealing to buyers or renters who are environmentally conscious and want to play their part.

This credit forces the government to pay you for making your home more efficient and desirable.

Tax Credit #3: Investment Credit

This credit is something that every investor should be taking advantage of. As long as you’re planning on owning the property for longer than a year (which most people do), the government is willing to pay out a 15% tax credit.

The investors who benefit most from this tax credit are those who make capital gains of less than $74,900 per year.

Without this tax break, the taxes you would have to pay on any taxable income below $74,900 would be 15%. The government has to pay you back all your taxes on capital gains from property up to that amount.

For example, if you made $60,000 off selling a single property, and your neighbor made $60,000 from his home business, this tax credit would ensure that you keep every penny of that $60,000, while your neighbor would only receive two-thirds of his income after income tax and self-employment tax.

The advantage of this property tax credit allows you to build your investment portfolio on the government’s dime.

This real estate loophole should be all the incentive you need to dive in.

There’s so much unknown profit to be made from real estate profits alone. The government payout simply becomes an extra source of income.

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