Tax Benefits for Foreclosures
I have seen first hand how much money banks pour into these foreclosures. Many of these houses are absolutely trashed, and are sometimes in areas so rural, it would be hard to find an interested investor.
Recently I have been taking an accounting course, and realized why the banks pour thousands of dollars into these more distressed"houses", that are sometimes no more than a shack with 4 walls and a door. When the banks spend money on these assets, they are given tax benefits for doing so.
I know of such things as the FHA 203k loan, where part of the loan is allowed to be used for the rehab repairs, but this is different. Is the practice that the banks and hedge funds use open to LLC's, partnerships, sole proprietors,etc? Or must one have a certain minimum capital to receive tax benefits.
I am unaware of this being utilized by companies, the smallest companies we dealt with were still decent sized hedge funds. Perhaps there is a certain minimum capital needed for the tax benefits. Any words of wisdom would be appreciated.
-Carson