More and more people are realizing that they are losing a lot of money in the form of government taxes. For those who go out and do regular work every day, the government rewards them by taking thirty-five percent of their earnings. Basically, the harder someone works to make ends meet, the more money the government takes from them. Unfortunately, excessive taxation can hinder citizens from achieving the American Dream.
Best tax breaks
Real estate investors enjoy some of the tax breaks that are legally available. Typical workers must pay federal withholding tax, state unemployment insurance, Social Security tax, and Medicare tax. Savvy people are making serious money while minimizing taxable income with real estate investments.
Lower your tax liability
As mentioned earlier, the average worker pays about thirty-five percent of their income in taxes. That’s a lot of money. You can avoid all these crazy taxes by investing in Florida rental properties. It is true that you have to declare and pay tax on your rental income. These taxes can be offset by any mortgage interest paid on the properties, real estate taxes, repairs and maintenance, depreciation and any fees paid to the property management company. Often times, the cost of acquiring the rental property will cover taxes due to the Internal Revenue Service. Prudent people are putting their fists up to minimize taxable income on real estate investments. You can do this too.
By investing in real estate, you can avoid excessive taxation by the government. It doesn’t make good financial sense to send more than a third of your income to the Internal Revenue Service. Why slave away at a normal job when the government takes a huge chunk of your income, when you can relax and not own all the profits? Rental properties? The choice should be a no-brainer.
Ask your accountant
Naturally, everyone’s finances are different. It would be wise on your part to consult a local accountant for advice on how reducing taxable income from real estate investments can help your bottom line. You’d be surprised how much money you can save by buying rental properties in Florida. Keeping your wealth for your future and your family’s future is much better than giving it to the government.