Real estate investors smile at tax time

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

(This is Part 5 of an eight-part series. Read Part 1, Part 2, Part 3, Part 4, Part 6, Part 7 and Part 8.) "Why buy real estate in a flat market?" That is the essence of a question my airline seatmate asked me after he learned I invest in and write about real estate. But rather than answer his question directly, I asked him, "Do you own your home?" Purchase Bob Bruss reports online. "Of course," he replied. Then I followed up by asking him the benefits of owning his home. As I recall, he listed security, pride of ownership, tax savings, market-value appreciation, building equity, investment safety, no rent increases, and perhaps a few I forgot. My seatmate then asked me if I thought he and his wife should sell a rental house they own in Arizona. They seem to be having problems keeping it occupied by reliable renters since it is about 1,000 miles from their primary residence. But then he quickly added, "Our problem, if we sell, is we would owe tax on at least $75,000 of profit." Alt...