“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 […]

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. […]

Qualified Improvement Property: What You Need to Know

You need to think about the sale of your rental property when you claim depreciation on your qualified improvement property (QIP). Gains may be subject to higher-than-expected tax rates due to Sections 1245 and 1250 ordinary income recapture and other factors. Planning your depreciation methods can significantly impact your current tax liabilities and long-term taxable […]

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