BizSugar.com › Taxes › Are You Ready For Real Estate Moguldom? The Business and Tax Implications of Owning Rental Property

From the Rothschild family to John Jacob Astor to Donald Trump, a great many fortunes have been made in real estate. Conversely, as was evidenced in 2008 with the deflation of the housing bubble, many fortunes have also been spectacularly lost. Fortunes aside, owning real estate is one of the best ways to build equity. If you own your home, you are already one step ahead. With rental property, you can further augment your net worth while, after investing the necessary down payment, having the investment pay for itself (Leaving you free to move on to buying your next property). This is not a decision to take lightly and there are several business and tax factors to consider before taking the plunge: