Some countries will offer tax deduction for real estate but some may need to pay wealth tax.
May I know how U.S. (or most countries) treat it? Many thanks.
In the U.S., you’re assessed a “wealth tax” on your real estate’s assessed value. However, the real estate taxes paid are an income tax deduction.
The advantages come from being able to sell your property and buy another without being taxed on the capital gains. That is what I am using when I remember that real estate has *potential* tax advantages.
Without being taxed on the capital gains in US? Thanks.
It’s known as a 1031 transaction, but you won’t need to know that for the exam
http://www.irs.gov/uac/Like-Kind-Exchanges-Under-IRC-Code-Section-1031
For CFA exam,
Real Estate has tax benefits. Mortgage interest, property taxes and other expenses are tax deductible which benefits taxable owners of real estate.
Some of the benifit mentioned by CFA is questionable as well, for example low volatility. It just becasue the price is not transparent and not measured daily…