Income Tax Issues in Real Estate
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. Wrong! We must learn to distinguish between "repairs" and "improvements."
Dealing with Capital Gains Taxes
Properties go up in value, and the IRS wants a piece of the pie - when you sell. Taxes on capital gains are a concern for many 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 when they realize that their taxable gain is higher than expected, and part of it is taxed at 25%. What gives?
Reducing Taxes with Asset Segregation
Who would not want to double his depreciation write-off on rentals? Guess what - there is a way! Not many investors know about it however. Read the article and discover the untapped opportunity!