Posted by JHyre in Ohio on July 22, 2002 at 06:30:33:
Your question is quite broad, and the answers re in the MNG archives. In a nutshell, the tax advantages of investment property are:
- Ability to pay low capital rates, instead of high ordinary rates, upon sale;
- Ability to take depreciation deductions against orndinary-rate income (i.e.- rents), and pay the depreciation back at lower 25% rate- or never pay it back by holding forever;
- Ability to 1031;
- Ability to do installment sales.