Invest in Real Estate

Real estate is one of the most tax effective investments. The mortgage interest deduction is the first tax benefit of realm estate ownership. Real Estate is considered as long term investment. If you keep a piece of land without selling for at least a year, you can pay less tax. Tax depreciation is another benefit, as you can pay lower property taxes over time if you have purchased an older property. The time of year you choose to sell your real estate has a great influence on the amount of taxes you have to pay. Sell properties at the beginning of the year rather than waiting for the year end.