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I also forgot to mention: Better access to tax incentives. Some of the better tax incentives out there only make sense with large investments. Taking RE as an e
by BeetleB 3y ago
I also forgot to mention: Better access to tax incentives. Some of the better tax incentives out there only make sense with large investments. Taking RE as an example, there is cost segregation, where you can take most of the depreciation up front (so not unusual to see someone invest $50K, and get $20K depreciation the first tax year - which can be rolled over: They pay no taxes on the first $20K of profit/revenue)
Due to IRS rules on how to do it, it's not profitable for ordinary folks who may own an extra house they rent out, because one has to do a formal study, which has a fixed fee. But if you own an apartment complex with 10+ units, the depreciation gains significantly overcome that fixed fee.