[…] In fact, the landlords’ rules are even more restrictive. Simply buying a future rental is not enough. The property must be ready and available for rent – which is another way to say that the initial rehab must be […]
[…] This is your last chance. If you’re planning to sign up for a job search service, take some job-related classes or buy a computer for your W2 job – do it now. You can also pre-pay union and professional dues, investment-related services and subscriptions, and investment advice. “Job” means […]
[…] Pre-pay 2017 property taxes on your personal residence. This is not an absolute rule, but it should be a wise move for most people, not just investors. Because of the new law, you may lose the tax benefit of property taxes on your homestead. So make sure the bill is paid in 2017 […]
[…] I’m not too alarmed. First, this change (IF implemented) will only affect companies that are designated as “a trade or business.” This term has been often used in the current tax law – but never defined! It led to numerous lawsuits against the IRS, with inconsistent results. Basically, it’s grey area […]
[…] In most cases – nothing, as the IRS will automatically identify affected taxpayers by zip code. If you’re qualified, but the IRS did not recognize you as such, you will need to contact the IRS in response to a proposed penalty notice […]
[…] Here is a screenshot of my email exchange with a new client who switched to us for 2014 tax returns. Obviously, this is a big-time investor with multiple REI companies. My comments are […]
Some people simply enjoy self-torture. They do their own taxes. If you are one of them and you never heard of “depreciation recapture” – it’s time to get an accountant. If you already have an accountant and she never discussed “depreciation recapture” with you – you need a new accountant. Either way, it’s a good …
Any real estate investor is happy when the value of his property goes up. The flip side of that growth is taxes, known as capital gains taxes. Let’s look at a simplistic example. If you originally bought a property for $100,000 and later sold it for $160,000, you made $60,000 on the deal. The IRS …
Capital Gain Taxes – The Big Bad Wolf for Investors Read More »
Of course, repairs! Why bother with some technicalities? Because if you don’t, the IRS will. Everything you spend to fix the real property is classified is either repairs or improvements. The cost of repairs is a current year expense, fully deductible. The cost of improvements is a capital expenditure, only partially deductible through depreciation. Let’s look …
A few years ago, investors loved foreclosures: it was an opportunity to buy cheap. Today, investors themselves are getting foreclosed on. As always, the IRS is making things worse. Whether you are buying foreclosures or being foreclosed – you need to know the IRS rules. 1. Foreclosure is a sale. You give up the house, …
