This call comes almost weekly: Michael, I just sold this house for $110,000 and my mortgage was only $100,000, but I did not actually make $10,000 – they gave me a check for only $4,000 after all these stupid fees. Do I really have to pay taxes on the entire $10,000 or just on the …
Having a teenager in the house is an experience – a learning experience. Here is what I learned the other day: when a kid walks into a store and then walks away with some items that he, let’s say, neglected to pay for – there is a term for his activity. And it’s not what …
Not for the IRS, anyway. But before we turn attention to the almighty IRS, let me share some mean-spirited general comments. Ten years ago, the title “real estate investor” actually had some meaning and respect, and it almost had to be earned. Like, for instance, you would have to complete couple deals before calling yourself …
[…] If taxes were simple (right!), you would pay taxes only on the money you actually received. In the year of sale, it would be your down payment plus maybe couple more payments – and that’s it. This is not how it works though. [..]
[…] Now, who would walk away from this juicy deal, may I ask? Answer: anybody with a basic understanding of IRS taxes. Here is the deadly trap I was referring to: the IRS will tax Andrew on his entire… […]
[…] I can see 3 scenarios where this tax can affect real estate investors with high overall income. Interest from owner-financed properties, especially with wraps. In a wrap situation, you will not be able to offset the interest you receive from the outside loan […]
[…] If, as a result of your capital gains, your tax return will show a total balance due to the IRS of more than $1,000, you may owe the IRS an “estimated tax” payment which is due January 15th. […]
[…] I can also see numbers from hundreds of other investors. And when I see so many of them, I notice some trends. Certain things just seem to work. […]
[…] Keep in mind that certain expenses, particularly those related to rehabbing, may not be deductible until the property is rented or sold. In that case, paying the bills in December […]
[…] This question pops up every December: should I pay my property tax bill in December or January? Well, the answer is not that easy. Let’s tackle it one step at a time. 1. Do I really have a choice? […]
