Top Tax Saving Tips for Long Island Real Estate Investors

Blog January 31, 2015 By Admin

2015 is quickly shaping up to be an exciting and very profitable year for Long Island real estate investors. The big question is how can investors minimize tax liability, and maximize their net returns?


2014 was one of the best years on record for many in the real estate world. 2015 is only expected to build on that as property investors are able to capitalize on low interest rates, distressed NY property inventory that is still trickling online, and rising property values. However, with the president promising more imminent tax hikes there will be a dramatic difference in the gains, and net returns of those that take advantage of available tax relief, and those that neglect them.


Five Ways for LI Real Estate Investors to Reduce Taxes in 2015:


  1. Incorporate

Real estate investment offer many built in benefits including keeping ahead of inflation and depreciation for tax purposes. Yet, many New York investors could be reducing taxes further, and potentially be benefiting from an additional round of write-offs and deductions by incorporating, organizing LLCs, and other legal entities and structures.


  1. Self-Directed IRAs

Self-directed IRAs have become one of the top tax saving vehicles of sophisticated real estate investors. This provides individuals all of the benefits of an individual retirement account for tax deferred and tax free returns, as well as all of the advantages of investing in high yield real estate. Fortunately, competition between firms rushing to serve interested investors has significantly improved offerings and reduced the costs of establishing them.


  1. Property Tax Adjustments

One of the Northeast’s most innovative investment property financing sources recently recommended using property tax adjusters to file grievances and get tax bills on investment properties reduced to lower holding costs, and increase net yields and cash flow.


Read: How Property Tax Adjusters Help Buying and Refinancing Homes


  1. Maximize Leverage

With mortgage interest rates so low this is the ideal time to refinance investment properties, and maximize leverage on new acquisitions, as well as on primary residences. Interest paid and some of the closing costs involved can be tax deductible.


Use this Mortgage Tax Deduction Calculator to Find Out How Much You Could Save


  1. Keep Great Records

All the potential tax breaks in the world won’t mean much unless you keep great records. Keep tract of everything in order to maximize your deductions when filing taxes, and ensure a great defense if ever audited.

Get Started Saving Now by having Property Tax Adjusters, Ltd. review your property tax assessments…