Tax-Saving Strategies for Real Estate Investors

1. Own Properties in a Self-Directed IRA You’re probably familiar with IRAs and Roth IRAs as a tax-deferred way to invest for retirement. What you may not know is that you can set up your own self-directed IRA and use it to invest in real estate tax-free. Be warned: This isn’t as simple as buying…

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Vehicles

Vehicles Questions about vehicles are one of the most frequent inquiries I get during tax season. There is so much confusion and misinformation regarding the deductibility of vehicle expenses. A vehicle used for business may be owned by the business or by an employee. The method of claiming the deduction will differ depending on the…

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Foreign Investment in Real Property Tax Act of 1980

Foreign Investment in Real Property Tax Act of 1980 Under FIRPTA, a buyer who purchases U.S. real estate from a foreign seller is obligated to withhold from the seller’s proceeds, and submit to the IRS, a percentage of the sales price of the U.S. real property. This tax withholding is a prepayment of the foreign…

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S Corporation Facts

S Corporation Facts March 15, 2022 is not only the filing deadline for S Corporation’s 2021 calendar year Form 1120S, it is also the deadline for filing Form 2553 with the IRS to get a new entity S Corporation status for calendar year 2022. While the IRS is cracking down on S corporations with little…

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Converting a Rental to a Residence

Converting a Rental to a Residence Thinking of moving into a rental property before you sell it? Be aware of tax consequences before doing so. One old strategy for paying less tax on the sale of an investment property was to move into your rental and use the property as a primary residence for two…

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Home Office Deduction for C and S Corporation

Home Office Deduction for C and S Corporation Don’t Rent Your Home Office to Your Corp. IRC Section 280A(c)(6) prohibits claiming deductions for the rental of your home office to your corporation. Therefore, if you rent your office to your corporation, you would have to report the income but neither you nor your corporation would…

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What Do You Do

What do You do if You Don’t have Enough Money To pay your Taxes? Maybe you should apply for a Payment Plan. What is a payment plan? A payment plan is an agreement with the IRS to pay the taxes you owe within an extended time frame. You should request a payment plan if you…

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Non-Residential Property Improvements

Certain property that is normally depreciated over 39 years can now, (for a limited time offer), be deducted fully in 2022! First, who can take this Big Tax Break? Owners or Lessees of • Office Buildings • Restaurants • Bars • Stores • Strip Malls • Motel or Hotel • Warehouse • Factory Second, what…

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Can I do a 1031 (Like kind) Exchange with my Dad?

Maybe. There are many rules in place to limit tax free exchanges with a related party. Most are designed to prevent basis shifting. A tax-free exchange with a related party cannot be for tax avoidance purposes. If a property is sold at a gain, and the cash and the property remain within the family, the transaction will…

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