First good news… you can be both real estate investor and real estate dealer with respect to your real estate portfolio. Let’s start with the big-time tax consequences. Profits on dealer sales are generally subject to taxes at both ordinary income rates of up to 37 percent, and self-employment rates of up to 15.3 percent. …
Defining “Real Estate Investor” and “Real Estate Dealer” Read More »
If you claim status as a tax law–defined real estate professional who can deduct his or her rental property losses, your time record for the year must prove that you spent more than one-half of your personal service (personal services is defined as the time the taxpayer performs in trades or businesses during the tax …
Your rental properties provide tax shelter when you can deduct your losses against your other income. One step to deducting the losses is to pass the tax code’s 750-hour test. And one step to finding the hours you need to pass the time test may be your drive times. Trzeciak Case Mariam Trzeciak owned, managed, …
Drive Time Logs May Improve Odds of Deducting Rental Property Losses Read More »