Tax Insight pp 261-265 | Cite as

Real Estate Losses

Your Loss Is Your Gain
  • M. Casey Murdock


Real estate has long been the traditional safe haven for taxes. It provides an opportunity for tax-free (deferred) cash flow. It also offers tax-deferred appreciation, or growth in the value of the investment. It even offers the opportunity to sell assets and purchase others without incurring any tax on the realized gains. Combining these tax benefits with the ability to use high amounts of leverage in the purchase of real estate makes for an ideal way to produce tax-favored income for the short- and long-term future. In fact, real estate is the most commonly used investment for those seeking tax incentives. Illustrating the point, after some modifications to the real estate tax laws in 1986, a committee member—Fortney H. (Pete) Stark, (D-CA)—on the House Ways and Means Committee famously stated: “It’d take a genius to invest in real estate and pay taxes.”


Real Estate Cash Flow Business Income Passive Loss Real Estate Property 
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© M. Casey Murdock 2013

Authors and Affiliations

  • M. Casey Murdock
    • 1
  1. 1.CAUS

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