The Best Investment

12 November 2013 / Uncategorized / Comments Off on The Best Investment

Welcome to another edition of Tuesday Tidbits where we make tax and accounting simple. I'm your host Charles D. Shapero CPA with Widet Bookkeeping & Tax, and today we're not going to talk about tax. We going to talk a little about investment advice, I am not a financial planner but one investment I really like is Real Estate,well and I guess it is tax related, cause that's one of the reasons I like it. If you buy a portfolio of rental properties you can have people live in these properties for 30 years, pay your mortgage payment and all the expenses related to that property, and then 30 years from now, you own a house free and clear. Sounds pretty good doesn't it? Who wouldn't want somebody else to pay their mortgage for them on a house they're going to own. It gets better. During the time we rent this property we're depreciating it. Which means not only do we have our rental income but we have our expenses of our mortgage interest, our property taxes, we're also depreciating the house, so we have a situation where we have positive cash flow, in other words our bank account and wallets are getting fat. But due to depreciation, it's hitting our tax return and reducing our tax bill. What could be better? A lot of our clients here are rental real estate investors and long term holders of real estate, they do multi-family apartment buildings, residences, and it is one of the best investments you can make. This concludes today's non-tax Tuesday Tidbits, see you next Tuesday. Widget Bookkeeping & Tax Know More, Keep More.

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