Installment Sale: Use it to Maximize Profits and Defer Taxes
Installment Sale: Use it to Maximize Profits and Defer Taxes
Category:
Real Estate
How To Deduct Mortgage Interest When Your Name Is Not on the Deed
The tax law has an incredible break for unconventional property owners. You can deduct mortgage interest payments even when the deed to your house and the home mortgage is in somebody else’s name. Here’s what took place to Shannel Davis. Shannel could not personally get approved for a home mortgage. Her parents stepped in to …
How To Deduct Mortgage Interest When Your Name Is Not on the Deed Read More »
Is Your Vacation Home Is a Rental Property?
If you have a home that you both rent out and use personally, you have a tax-code-defined vacation home. Under the tax code rules, that vacation home is either a personal residence or a rental property. The tax code classifies your vacation home as a rental property if you rent it out for more than …
Is A Vacation Property Rental Subject to Self-Employment Tax?
The answer to the question of is a Vacation Property rental subject to self-employment tax is that it depends! Side 1 – Vacation Property Rental The taxpayer owns a fully furnished vacation property that is rented to customers via an online rental marketplace. The taxpayer is not a real estate dealer. The taxpayer provides …
Is A Vacation Property Rental Subject to Self-Employment Tax? Read More »
Principal Residence Tax Break-Beware of Little-Known Expensive Rule
Once upon a time, you could convert a rental property or vacation home into your principal residence, occupy it for at least two years, sell it, and take full advantage of the Principal Residence Tax Break gain exclusion privilege of $250,000 for unmarried individuals or $500,000 for married joint-filing couples. Unfortunately, legislation enacted back in …
Principal Residence Tax Break-Beware of Little-Known Expensive Rule Read More »
Is a Property Flip, an Investor or a Dealer Property?
If you buy a property to flip( fix it up, and then sell it,) is that property a dealer or an investor property? The Difference If you are a real estate dealer, you face ordinary income and self-employment taxes. If you are a real estate investor, you can qualify for tax-favored, long-term capital gains on …
Is a Property Flip, an Investor or a Dealer Property? Read More »
Real Estate “Dealer or Investor,” Why Does it Matter?
The first good news is that you can be both real estate investor and real estate dealer with respect to your real estate portfolio. The next good news is that you are in control, and by knowing just a few rules about dealer and investor classifications, you can do much to increase your net worth. …
Real Estate “Dealer or Investor,” Why Does it Matter? Read More »
IRS Rental Properties Audit-How the IRS Lost $55,000
Let me tell you about Lisa and Jimmy. They had a very unsatisfactory visit with the IRS. The auditor examined their three rental properties, disallowed their losses, and told them to expect a tax bill for $55,000. Current score: IRS $55,000 ahead. But one good thing happened during the visit. The IRS agreed that Lisa …
IRS Rental Properties Audit-How the IRS Lost $55,000 Read More »
Rentals: How Does IRS Audit Land and Building Values
When you buy business or investment real property, such as an apartment building, you usually pay one lump sum for land, buildings, and other improvements. There’s no cost breakdown. You can’t depreciate land because it doesn’t wear out. So, as far as depreciation goes, the land is useless. What you need is a way to …
Rentals: How Does IRS Audit Land and Building Values Read More »
Real Property for Section 1031 Exchanges, IRS Defined
Have you heard of a tax-deferred Section 1031 transaction? Do you own business or investment property that has gone up in value? Would you like to acquire a new property? If you sell the old property, you’ll have to pay tax on your profits. Don’t do that. Instead, do a tax-deferred Section 1031 transaction. With …
Real Property for Section 1031 Exchanges, IRS Defined Read More »