Surprising Strategy Pros Use to Lose Real Estate Money
Understanding Tax Loss Harvesting
One of the key methods professionals use to lose real estate money strategically is through tax loss harvesting. This involves selling a property at a loss to offset taxable gains from other investments. For example, if you sell a property for a $50,000 loss, you can use that loss to reduce your taxable income, potentially saving thousands in taxes. This strategy is particularly effective for high-net-worth individuals who face significant capital gains taxes1.