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Your #1 Investment Tax Write Off: Real Estate Depreciation

Jan 22, 2008
Sometimes Tax Time can be so painful...

Remember the last time your Mutual Funds took a loss and you STILL had to pay taxes. Doesn't seem fair. And when your stocks take a loss all you can do is write that off against your stock gains.

Have you ever thought to yourself,

"Wouldn't it be nice to be able to get good cash flow and a generous tax deduction from the same investment?"
Think of it... a single investment offering you the best of both worlds. Is that even possible?

I have good news, because that is Exactly what direct ownership in Commercial Property offers you. AND I guarantee you this is information your Stock Broker doesn't want you to know.

Here's the best tax write off in Investing...

When you own Commercial Real Estate you can take as much cash flow as the property will produce as income AND use Depreciation to write off thousands of dollars of that income every single year.

There it is ... that "Best of Both Worlds". You take Cash Flow as income and write off Depreciation at the same time ... no matter how much Income you made on the property that year.

Here's how Depreciation works...

Commercial Real Estate is "Depreciated" using a 39 year tax life. The IRS basically says that the buildings on the property are worthless 39 years after you purchase. This means every year you can write off one thirty ninth of the value of the building(s) against your income for the year.

It's a leveraged write off too...

Here's what I mean. You get to write off 1/39th of the Entire Value of the Entire Property ... not just money you personally put in to the deal.

Check out this example...

If you put $200K cash down on a $1M Commercial Property, you can use Depreciation to write off 1/39th of the full $1M - not just the $200K you put in. This equals $29,614 per year, every year for 39 years in a row if you wish.

And it gets even better...

You can even "Accelerate the Depreciation" and take a bigger write off than this.

Certain parts of your Commercial Property can actually be depreciated over shorter tax life periods and give you an even larger depreciation deduction. It's done using a technique called Cost Segregation.

Here's how it works...

Some components of your Property have a tax life of five years, some seven or even 15. There are consultants who can routinely add thousands to your annual Depreciation write off by taking a week to do a Cost Segregation Analysis for you. You can find hundreds of Cost Segregation Consultants with a single search of that term in Google.

Accelerated Depreciation is totally painless, gives the already generous depreciation write off a major boost. Even though it sounds like magic, this technique is completely above board and accepted by the IRS.

At Tax Time it is important to remember this...

Depreciation is the #1 Tax Write Off available to investors today and just one of the reasons Commercial Property deserves a prominent place in your portfolio.

We have created a special report outlining 35 separate unique advantages of direct ownership of Commercial Property. You can download your copy at our website below to kick start your Commercial Real Estate Investing Education.
About the Author
Monte Lee-Wen has purchased over $150 Million in Commercial Property to date. As CEO of Investortours University, his training programs teach you the Insider Secrets of Commercial Property Investment. CLICK THIS LINK NOW to start your Commercial Real Estate Investing Education with his FREE Report "35 Reasons You Should Invest in Commercial Real Estate"
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