It has been reported in the news lately that in recent years, Donald Trump paid only $750 in taxes to the IRS. How can this be?
Would it surprise you to learn that interest paid on a mortgage is tax deductible? How much is the annual interest on four hundred million dollars? Trump pays mortgage interest. He does not owe tax on the money he pays as interest. If you owned some rental property, and if you were paying interest on a mortgage on that rental property, those interest payments would be tax deductible.
Do you know what is better than tax deductible interest? DEPRECIATION, the real estate owner's ultimate tax deduction. Interest paid on a mortgage is tax deductible. Trump probably pays twenty million a year in interest. He does not have to pay taxes to the IRS on that money. He does have to have income to pay that interest.
Depreciation is better than that! If Trump owns five hundred million dollars worth of real estate, he can write off (as an expense) depreciation of about thirteen million per year just as if he is paying the thirteen million to someone. Who is he paying it to? Nobody! What a loophole.
|Let me help you pay less taxes.|
If you are a forty year old employee earning $100,000 per year salary, you are probably paying taxes to the IRS. You could buy yourself a duplex for $250,000, You could put $25,000 down and get a $225,000 mortgage. The rent could make the payments. Time and inflation would cause the property to increase in value. As you made the payments with the rent money, your equity would grow every month as your principal payments reduced your mortgage amount. The interest would be tax deductible.
Just like Trump, every year you could write off about $7200 in depreciation. You could tell the IRS that you had this depreciation expense. Who are you paying the $7200 to? Nobody. It works for Trump. It will work for you.
If you are currently paying money to the IRS, there is no better way to reduce your tax bill than writing off some depreciation on rental property. Call me, Ron Climer, Realtor at 828 755 6996. I will help you buy your first rental property. Real estate is the ideal investment. Watch this short video.If you do this when you are forty, thirty years later you will be seventy. You will ask yourself," Where did the time go?". Now, your first investment property is paid for. It is free and clear. Not only that, it has doubled in value. The rent has also doubled. Owning real estate is wonderful. What a retirement program!