Real Estate Professionals
This handout details the requirements of individuals to qualify as a real estate professional. The handout also discusses the special rules for real estate activities.
HIGHLIGHTS:
- Passive loss limits.
- Exception for real estate professionals.
- Qualifying as a real estate professional.
- Material participation.
Real_Estate_Professionals_2021.pdf
Rental Income and Expenses
This handout describes the various aspects of rental income and expenses. There is also an explanation of the difference between a repair and an improvement and the tax consequences of each.
HIGHLIGHTS:
- Rental income and expenses.
- Security deposits.
- Vacant property.
- Insurance and interest expenses.
- Repairs and improvements.
- Roommates.
- Personal use of property.
Rental_Income_and_Expenses_2021.pdf
Rental Income and Expense Worksheet
This worksheet provides a taxpayer with a means to track income and expenses for a rental property. The worksheet also provides a place to keep track of depreciation items.
HIGHLIGHTS:
- Rental income worksheet.
- Rental expenses worksheet.
- Depreciation worksheet.
- Advance rent, security deposits, and expenses paid by tenant.
Rental_Income_and_Expense_Worksheet_2021.pdf
Repairs vs. Improvements
This handout provides information which will help determine whether a current business deduction can be taken for expenses incurred on business assets, or whether the expense must be capitalized and depreciated.
HIGHLIGHTS:
- Repairs vs. Improvements comparison chart.
- Requirements for deducting as a current expense.
- Recordkeeping guidelines.
Repairs_vs._Improvements_2021.pdf
Reverse Mortgages
This handout contains information for homeowners over age 62 who may be interested in converting the equity in his or her home into cash. Included is guidance on who qualifies for a reverse mortgage and examples of reverse mortgage situations.
HIGHLIGHTS:
- Tax-free income.
- Reverse mortgage situations.
- Applicable tax law.
- Examples.
- Possible risks.
Short-Term Rentals
This handout contains information for taxpayers who rent out their home, a room in their home or a vacation home. Included is guidance on tax-free rental use and when substantial services are provided.
HIGHLIGHTS:
- Rental and personal use.
- Limit on deductions.
- Tax-free rental use – 14 days or less.
- Providing substantial services.
Rental Real Estate QBI Safe Harbor
This worksheet provides information about Rental Real Estate QBI Safe Harbor.
HIGHLIGHTS:
- Qualified Business Income (QBI)
Deduction. - Safe Harbor.
- Rental Real Estate
QBI Safe Harbor. - Advance rent, security deposits, and expenses paid by tenant.
Rental_Real_Estate_QBI_Safe_Harbor_2021.pdf
Sale of a Principal Residence
HIGHLIGHTS:
- Exclusion of Gain
- Ownership and Use Rules
- Sale of Vacant Land Adjacent to Residence
- Partial Maximum Exclusion of Gain
Sale_of_a_Principal_Residence_2021.pdf
Capital Gains and Losses
HIGHLIGHTS:
- Capital Gains and Losses
- Holding Periods
- Mutual Funds
- Capital Gain Tax Rates
- Special Circumstances
- Capital Gain Distributions
- Capital Loss Limitation/Carryover