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NEW: "Real estate investors" do not exist.
Not for the IRS, anyway, and this creates a lot of confusion among investors. The IRS distinguishes between two types of investing - and so should you.
I sold a house. What do I owe the IRS?
To say it nicely, this is a very confusing question. To begin with, you need to determine whether it was a "rental" or a "resale" property - which is confusing in itself.
NEW: I am not a dealer - I am an investor!
There is a lot of fear of being classified a dealer. Is it something to be afraid of? Maybe. The truth is - you cannot simply "opt out" of being a dealer.
Foreclosed. Do I have to pay the IRS now?
Foreclosures are everywhere. Whether it happened to you or you're buying foreclosures - the IRS adds to your stress with their complicated rules.
Repairs or improvements?
Most investors consider any fixing of the property a "repair" - whether it's replacing a broken window or a $50,000 rehab project. Dangerous mistake!
Dealing with capital gains taxes
Properties go up in value, and the IRS wants a piece of the pie when you sell. Capital gain taxes are a concern for investors. What can be done to minimize the damage?
What depreciation recapture?
Most investors know that the maximum tax rate on capital gains is 15%. They are in for a shock: the taxable gain is higher than expected, and part of it is taxed at 25%.
IRS helping investors: 2009 homebuyer credit
New 2009 law: free money from the IRS for "first-time homebuyers" - great news for regular folks, and even greater news for RE investors! Do not miss the opportunity.
Reducing taxes with asset segregation
Who would not want to double his depreciation write-off on rentals? Guess what - there is a way! Read the article and discover a great but little-known opportunity.
