What tax benefits will I realize from a passive investment in commercial real estate?

The beauty of real estate is partially due to its many tax advantages. Some to consider are below:

a. Depreciation. Due to this factor, a Limited Partner may see a paper loss on his or her K-1 statement. This loss can also be used to offset other gains in your investment portfolio.

b. 1031 Exchange. Instead of paying capital gains tax upon disposition, you can invest in a like-for-like property to help grow your investment earnings tax-deferred.

c. Supplemental Loan or Refinance. These events can return a significant amoun tof your initial invested equity, which the IRS considered a non-taxable event.

d. SDIRA. Investing through your self-directed IRA will allow you to return your profits to your IRA account tax-free.

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