TaxTip about Depreciation
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As a rental property owner, there are no tax benefits to making principal payments for your property - you only get to right off the interest. As a result, many people get taxed on their income from rental properties, and if you are like me, you don’t want to get taxed on the additional revenue that your rent brings you. One good thing about owning rental property however is that you can claim a tax loss even though you are making a profit. This is possible through depreciation.
By maximizing depreciation deductions, you minimize taxable liability and save money... continue reading >>
TaxTip about Material Participation
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Why is it better to be a "Real Estate Professional"?
To say it in one line: Real Estate Professionals can deduct unlimited losses from rental property, other investors can't.
I'll clarify this later, but here's the technicality: material participation in a passive activity (like owning rental property) results in non-passive treatment of the income.
This is what that means:
Most of us know that rental owners (investors) can deduct up to $25k in losses from rental property, but this tax benefit is phased out for households making more than $100k, and completely phased out for AGI's over... continue reading >>
I Need A POSTERBOY/ WOMAN. Who wants the Spotlight?
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Hello all. I am the marketing director for a new product (SimplifyEm.com), and there is one thing that I have learned with real estate agents and investors - people want to SEE credibility, and they recognize credibility when they see a fellow real estate agent.
To put it in short, when I send out an e-mail, I get X amount of clicks. When I send out an e-mail that has a quote from a Realtor, I get 4X clicks. When I send out an email with a quote and a link to the website for the... continue reading >>
TaxTip about Auto Expenses You Can Actually Deduct
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Many people do not take full advantage of deductions for their vehicles, and many times it’s because they don’t know what they are allowed to deduct.
Vehicle expenses paid exclusively for rental activity can be fully deductible. Using the actual expense method instead of the standard mileage rate might be more beneficial if your vehicle incurred a lot of expenses during the year.
Usually the largest actual vehicle expense that you can deduct is depreciation, which allows you to deduct the value of your vehicle over a period of 5 years.
Many times, depreciation is... continue reading >>
TaxTip about Meal and Entertainment Expenses
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When traveling away from home on business, you may incur expenses for meals and entertainment. You can deduct 50% of meal and entertainment costs incurred when traveling locally, overnight, or long distance for your rental (business) activity. So if you get hungry driving across town while going to pickup the rent check (or showing a house), consider taking a prospect out to lunch. Deducting half of your combined expense may be more beneficial than not being able to write-off your own meal. Keep in mind that meal and entertainment costs are deductible only if they are considered ordinary and necessary... continue reading >>
No Silver Mercedes for You. I have Black, and I have White. Now GET OUT OF MY FACE!
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Buyer, Seller, HOMEOWNERS AND INVESTORS
I looked through over 100 Realtor websites today. You might ask why - I'll get to that in just a bit.
This is one of the common things that I saw:
Let me guess: you were trying to make it easy for the buyers to get to the buyer section, and the sellers to get to the seller section, right?
BIG NO NO!!!
What about the folks who don't call themselves buyers or sellers - the investors and homeowners - WHAT ABOUT THEM? Where should they go?
If you think that most people who... continue reading >>
What You Might Not Know About Gas
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What you might not know about gas I received a message today, and I thought it was incredibly interesting. I forwarded it to everyone I know, and I thought it would be nice to share with everyone here. It's about a guy who has been working in the petroleum business for 31 years, and his tips on pumping gas. Sounds almost like it should be common sense, but it's not. Here are some tricks to get more of your money's worth for every gallon... Only fill up early in the morning, when the ground temperature is still... continue reading >>TaxTip about StartUp Expenses that you can Deduct
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Start-up expenses are costs incurred while creating a business or for investigating the creation of an active trade. This includes expenses incurred when acquiring an existing activity.Business start-up expenses are usually capitalized, but you can elect to deduct up to $5K of business start-up costs right away.
A start-up cost can be amortized if it is an expense that you could normally deduct if it was incurred while operating your existing trade or business, or if it is a cost you pay or incur before the day your business begins.
Common start-up expenses include:
... continue reading >>TaxTip about Paying Your Kids and IRAs
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I hope you're all done with your taxes... if not, do you really have time to read this??? Well, for whatever reason, you might be interested, so here's another tax tip I'd like to share.
Here's a bright idea:
Pay your kids to do some of your work (like on properties you own), and put the money in IRA accounts for them.
This is especially a good idea if you’ve already maxed out on your and your spouse’s IRA contribution for the year.
So if you’re at a high tax bracket the end of the year,... continue reading >>
Go Out of Your Way to Respond to People who Comment!
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One thing that we do really well is respond to people who comment on OUR blogs... Of course, it's the right thing to do!
If someone takes the time to go out of their way and read your blog, and post a comment on your blog, that's obviously a nice gesture... You should at least take the time to comment back, or at least thank them for making a comment.
Unfortunately, some people only pay attention to their own blogs...
(Hopefully they are reading this)
Here's a bright idea!
(I seem to be full of... continue reading >>
