Investing in real estate, while not always a sure thing, is certainly one of the more reliable places to put your money, at least if you are thinking about a long term investment. However, it can definitely pay to consult a tax advisor before you make a purchase – or better still, before you even start looking – so that you can be aware of the tax implications of your investment and you are therefore able to optimize the way you invest in real estate from a tax point of view.
Make sure you find a tax advisor – this might be a tax accountant, a tax attorney or some other similar profession – who is clear on the rules and regulations in the jurisdiction where you are buying the property. Things can vary from area to area. Once you have found an appropriate consultant, get them to explain the relevant tax laws to you in regards to investing in real estate, and in particular in areas like tax deductability of various expenses (including your borrowing expenses), and the implications of any capital gains if you decide to sell the property at any particular time. Doing this in advance can not only save you unnecessary problems and expenses, but it could even make you a lot more money out of your investment – and surely that’s the point of investing.? photo credit:?Robert S. Donovan