Advantages
Development properties generally do not produce income in their first year or two, and income may not keep up with expenses for some period of time. These cash flow losses can be used to offset income from other passive investments, as we know, reducing the amount of taxes to be paid in that year. These reduced taxes are only deferred until a later year, however, because the investor will need to pay capital gains when the property is sold.
Tax-deferred cash f
