Your Guide to Real Estate Options

Real estate options and leases with purchase options can enhance your real estate investment profits. Here’s a concise guide to help you navigate the potential pitfalls and maximize your returns. Stand-Alone Purchase Option A stand-alone purchase option can be highly profitable. Here’s how it works: Lease with Option to Buy This approach offers several financial […]

Tax Deductions for Raw Land Investments

Purchasing raw (unimproved) land can be a great way to get into real estate investing. Raw land is ordinarily cheaper than land with buildings and other improvements. Moreover, you don’t have the expense of handling building maintenance and other upkeep, not to mention the headaches of dealing with tenants if you rent improved property. But […]

“Real Estate Investor” Vs. “Real Estate Dealer”

Great news! You can have in your real estate portfolio both investor and dealer properties. This distinction is significant for tax purposes. Here’s a snapshot of the potential tax differences: Suppose you profit $90,000 from a property sale: That’s a potential savings of $24,597 in taxes for investors! You look at every property individually to […]

Cost Segregation: What Is It & When Should You Use It?

One significant tax benefit of owning residential rental property or non-residential commercial or investment property is depreciation—a deduction you get without spending any additional money. But regular depreciation for real property is slow. Residential rental property is depreciated over 27.5 years and non-residential property over 39 years, providing a relatively small deduction each year. Fortunately, […]

Section 1031 Exchanges or Qualified Opportunity Zone Funds?

Have you sold, or are you planning to sell commercial or rental property? To avoid immediately paying capital gains tax on your profit, you have options: With a Section 1031 exchange, you sell your property and invest all the proceeds inanother like-kind replacement property of equal or greater value. With a qualified opportunity fund, you […]

Tax Implications of Partnership Dissolution

As you consider winding down your partnership, here’s a concise overview of what you might expect under three typical scenarios of partnership dissolution. Scenario 1: One Partner Buys Out the Others If one partner buys out the others and continues the business, the exiting partners will likely recognize a capital gain or loss on the […]

How To Deduct Your Timeshare Stays

If you own a timeshare and use it only for personal and business lodging, you have a unique opportunity to maximize your tax benefits. Big Benefit The IRS allows timeshare owners who do not rent their property to claim deductions for business-related lodging without being subjected to the grim vacation-home rules. Guidelines for Maximum Tax […]

Rental Property Tip: Add a New Roof, Deduct the Old One

The IRS in its repair regulations gives you a partial disposition election that benefits you when you replace a structural component such as a roof on your office building or rental property. Previously, when you replaced a structural component such as a roof, the old roof’s remaining depreciation continued on your books, an ugly result. […]

Deducting Start-Up Costs For Your Rental Property

Are you interested in becoming a commercial or residential landlord? If so, you’ll likely have to shell out plenty of money before ever collecting a dime in rent. The tax code treats some of those monies as start-up expenses. Start-up expenses are some of the costs you incur before you offer a property for rent. […]

Don’t Settle for a CPA that Doesn’t Add Value to Your Business

Finding the right business accountant relationship

If you only hear from your accountant at tax time, you are likely settling for a business accountant relationship that is not serving you or your business well. Don’t think of your CPA as just a necessary expense required for tax preparation. You will need to invest a bit more throughout the year, but a […]

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