Shaya Seidenfeld Explains How Real Estate Can Lower Your Tax Bill

infoshayaseidenfel
20 hours ago
3 min read

Most people think of real estate as a way to build wealth—but what many don’t realize is that it’s also one of the most effective ways to lower your tax bill. Shaya Seidenfeld, a real estate advisor with 20 years of experience, shares how owning property can lead to major tax savings. His insights are grounded in real-world examples, not just theory.

Let’s break it down in simple terms.

Why Real Estate Offers Tax Benefits Most People Miss

Shaya Seidenfeld has spent two decades helping clients find smart investment properties. But beyond finding the right home or building, he often points out the tax benefits most investors don’t even know about.

Here are a few real tax perks that come with owning property:

Depreciation – You can deduct the “aging” of the building over time—even while its actual market value is rising.
Mortgage interest deduction – A portion of your loan payments comes back to you at tax time.
Property tax write-offs – State and local property taxes can be claimed on your federal return.
Expense deductions – Repairs, insurance, and property management fees may all be tax-deductible.
1031 exchange – You can sell one investment property and buy another without paying capital gains taxes right away.

According to Shaya Seidenfeld, these tax advantages can quietly add up to thousands in yearly savings—money that can be reinvested into more real estate or used elsewhere.

The Power of Depreciation, Explained Simply

Shaya likes to explain it this way: “Imagine if your car got older each year but somehow increased in value. Real estate can do that—and you still get a tax break for its 'wear and tear.' That’s depreciation.”

Here’s what that means for you:

For residential rentals, you can depreciate the property over 27.5 years.
For commercial properties, it’s over 39 years.
Each year, you subtract a portion of the value from your taxable income.

It’s a paper loss—but a real tax break. That’s why depreciation is one of the most powerful tools in real estate investing.

1031 Exchange: Delay Taxes, Keep Growing

If you sell an investment property for a profit, the IRS usually takes a bite. But if you do a 1031 exchange, you can roll that profit into a new property and delay the tax hit.

Here’s what you need to know:

You must identify the new property within 45 days.
You have 180 days to complete the purchase.
The new property must be of equal or greater value.

Shaya Seidenfeld often walks clients through this process personally. “The key,” he says, “is planning ahead. If you wait too long after the sale, you’ll miss your window.”

Real Estate Professional Status: Bigger Deductions, Bigger Wins

If you’re active in real estate full time, you may qualify as a real estate professional in the IRS’s eyes. That lets you deduct even more—including losses that can offset your job income.

Shaya explains: “I’ve seen clients who work in real estate full time reduce their total tax bill dramatically. But you have to meet the time requirements and document your hours.

Shaya Seidenfeld’s Simple Tips for Saving on Taxes with Real Estate

Want to get started? Here are five real-world steps from Shaya Seidenfeld:

Talk to a knowledgeable real estate advisor (someone who understands both markets and taxes).
Buy property that fits your long-term goals, not just what looks good today.
Keep good records—every repair and payment could be a tax deduction.
Learn about depreciation and ask your CPA how it applies to you.
Use tools like 1031 exchanges to keep your money working, not stuck in taxes.

Final Thoughts: Real Estate Isn’t Just About Earning—It’s About Saving Too

Real estate can help you grow wealth, but when you understand the tax side of things, you’re playing at a higher level. Shaya Seidenfeld makes this clear: “Every dollar you save on taxes is a dollar you can reinvest. That’s how smart investors get ahead.”

If you’re thinking about buying your first investment property—or want to find ways to reduce your tax bill on the one you already own—now’s the time to start.

Shaya Seidenfeld is ready to help you take that next step.