There are two sources of tax advantages. The easy one is depreciation. A little but not a lot of help. If the property is highly leveraged the depreciation helps. At the same time it creates higher risk unless the income to support it is super secure. The the tax advantage is a credit for certain types of housing. You would have to learn your subject to help him invest in those types of properties.
What can be concentrated on is teaching him the advantages of 1031 exchanges or Roth IRA investing. You can still use his money to invest while he postpones or eliminates the tax consequences.
INVESTOR WANTS TAX SHELTER-HOW THESE DAYS? - Posted by Susan (TX)
Posted by Susan (TX) on January 20, 1999 at 06:31:34:
I have a potential RE investor who is interested in getting some favorable tax benefits. These days, is there any way to do this? I am looking at a real estate + business investment. If investor owned majority of real estate and the business leased it back at an amount that would show slight loss, plus depreciation, etc., would this be the best approach?
Posted by Susan (TX) on January 21, 1999 at 07:03:56:
I guess I wasn’t clear…I have an investor who wants to partner with me to acquire RE/business investments, i.e. I want to use his money! Not help him invest it elsewhere. But he wants the best tax advantages vs. just making more money.