Thanks in advance!

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 fixedincome investments. Two important benefits to investing in real estate are the abilities to leverage investments and to decrease tax liability. Consider Kim's case: In 2011, Kim has an adjusted gross income from one job of $50,000 (not induding any deductions from real estate loss). In addition, Kin owns an apartment building that she rents out throughout the yeat. The revenues she received from her apartment building amounted to $150,000 in rent payments for the year. The operating expenses (maintenance, mortgage interest, and so forth) amounted to $90,000 for the year, Her income (before wbtracting depreciation expenses) for the apartment building is therefore (her rental income minus her expenses). Her accountant has informed her that the apartment bullding can be depreciated upto 567,500 for tax purposes in 2011; therefore, she can suatract of the depreciation expense from her rentai income (and thus not pay taxes on that amount). If her adjusted gross income were less than $100,000 per year, she could write off of the depreciation amount against her ordinary income. Suppose Kim is interested in purchasing an addiconal apartment bulding as an investment. She has $60,000 in cash and can borrow an additional $150,000 at an annual interest rate of 9% to purchase a property costing $210,000. If the property is expected to generate $25,200 per year ater expenses, then the benefic from leveroging the investment the cost of paying interest on the loan. 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 diversiffeation properties as compared to equity or fixedincome investments. Two important benefits to investing in real estate are the abilities to leverage investments and to decrease tax liability. Consider Kim's case: In 2011, Kim has an adjusted gross income from one job of $50,000 (not including any deductions from real estate loss). In addition, Kim owns an apartment bullding that she rents out throughout the year. The revenues she received from her apartment building amounted to $150,000 in rent payments for the year. The operating expenses (maintenance, mortgage interest, and so forth) amounted to $90,000 for the year. Her income (before subtracting depreciation expenses) for the apartment building is therefore (her rental income minus her expenses). Her accountant has informed her that the opartment builiding can be dept 567,500 for tax purposes in 2011: therefore, she can subtract of the depreciation expense from her rental income (and 1 axes on that amount). If her adjusted gross income were less than $100,000 per year, the could write off Suppose Kim is interested in purchasing an additional apartment building as an investment. she has $60,000 in cash and can borrow an additional $150,000 at an annual interest rate of 9% to purchase a property costing $210,000. If the property is expected to generate $25,200 per year after expenses, then the benefit from leveraging the investment. the cost of paying interest on the loan. Real estate has been a lucrative investment for many years. Real estate provides greater diversification properties as compared to equity or fixedincome investments. Two important benefits to investing in real estate are the abilities to leverage investments and to decrease tax liability. Consider Kim's case: In 2011, Kim has an adjusted gross income from one job of $50,000 (not including any deductions from real estate loss), In addition, Kim owns an apartment building that she rents out throughout the year. The revenues she received from her apartment bullding amounted to $150,000 in rent payments for the year. The operating expenses (maintenance, mortgage interest, and so forth) amounted to $90,000 for the year. Her income (before subtracting depreciation expenses) for the apartment bullding is therefore (her rental income minus her expenses). Her accountant has informed her that the apartment bullding can be depreciated upto $67,500 for tax purposes in 2011; therefore, she can subtract of the depreciation expense from her rental income (and thus not pay taxes on that amount). If her adjusted gross income were less wo per year, she could write off of the depreciation amount against her ordinary income. $7,500 $60,000 $67,500 is interested in purchasing an additional apartment building as an investment. She has $60,000 in cash and can borrow an additional an annual interest rate of 9% to purchase a property costing $210,000. If the property is expected to generate $25,200 per year after jen the benefit from leveraging the investment the cost of paying interest on the loan. 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 fixedincome investments. Two important benefits to investing in real estate are the abilities to leverage investments and to decrease tax liability. Consider Kim's case: In 2011, Kim has an adjusted gross income from one job of $50,000 (not including any deductions from real estate loss). In addition, Kim owns an apartment building that she rents out throughout the year. The revenues she received from her apartment building amounted to $150,000 in rent payments for the year. The operating expen rtgage interest, and so forth) amounted to $90,000 for the year. Her income (before subtracting depreciation expenses) for the i herefore (her rental income minus her expenses). Her accountant has informed her that the 1 be depreclated upto $67,500 for tax purposes in 2011; therefore, she can subtract of the depreciation expens: ie (and thus not pay taxes on that amount). If her adjusted gross income were less than $100,000 per year, she could write off of the depreciation amount against her ordinary income. Suppose Kim is interested in purchasing an additional apartment bullding as an investment, She has $60,000 in cash and can borrow an additional $150,000 at an annual interest rate of 9% to purchase a property costing $210,000. If the property is expected to generate $25,200 per year after expenses, then the benefit from leveraging the investment. the cost of paying interest on the loan. ncome investments. Two important benefits to investing in real estate are the abilities to leverage investments and to decrease tax liaumity. Consider Kim's case: In 2011, Kim has an adjusted gross income from one job of $50,000 (not including any deductions from real estate loss). In addition, Kim owns an apartment building that she rents out throughout the year. The revenues she recelved from her apartment building amounted to $150,000 in rent payments for the year. The operating expenses (maintenance, mortgage interest, and so forth) amounted to $90,000 for the year. Her income (before subtracting depreciation expenses) for the apartment building is therefore (her rental income minus her expenses). Her accountant has informed her that the apartment building can be depreciated upto $67,500 for tax purposes in 2011; therefore, she can subtract of the depreciation expense from her rental income (and thus not pay taxes on that amount). If her adjusted gross income were less than $100,000 per year, she could write off Suppose Kim is interested in purchasing an additional apat $150,000 at an annual interest rate of 9% to purchase a f ivestment. She has $60,000 in cash and can borrow an additional expenses, then the beneft from leveraging the investment. 00. If the property is expected to generate $25,200 per year after