Tax-Savvy Investing: 10 Ways to Minimize Your Tax Burden

9. Real Estate Investments

Real estate can offer several tax advantages, including depreciation deductions and the ability to defer capital gains through strategies like 1031 exchanges. Real estate investment trusts (REITs) also offer tax benefits, as they are required to distribute at least 90% of their taxable income to shareholders.

Investing in real estate can provide both diversification and tax efficiency. However, it’s essential to understand the complexities involved, including the potential for property taxes and maintenance costs.