dy Tools Tips rips << U CENGAGE MINDTAP Assignment: Chapter 13 Investing in Mutual Funds, ETFs, and Real Estate 6. Specifics of real estate investment - Tax liability and leveraging Making Real Estate Investments Real estate has been a lucrative investment for many years. Real estate provides greater diversification properties as compared to equity or fixed- income investments. Two important benefits to investing in real estate are the abilities to leverage investments and to decrease tax liability. Consider Deborah's case: In 2018, Deborah has an adjusted gross income from one job of $35,000 (not including any deductions from real estate loss), In addition, Deborah owns an apartment building that she rents out throughout the year. The revenues she received from her apartment building amounted to $105,000 in rent payments for the year. The operating expenses (maintenance, mortgage interest, and so forth) amounted to $63,000 for the year. Her income (before subtracting depreciation expenses) for the apartment