As the year is ending, there’s one topic that everyone in real estate should be thinking about… Tax planning. With 2024 just around the corner and new initiatives by the IRS beginning, it’s vital that now more than ever we’re tuned into the nuances of pesky tax rules. That’s why...
It's not hard to guess right on this one. Under IRS tax rules, every gift of real estate is considered a gift of equity. The value of real estate for gift tax purposes is set at fair market value. This means that your parents have to pay gift tax on the price that the real estat...
Disk 2: IRS Taxes for Rehabbers and Flippers IRS taxes can swallow up to 40% of your profits. With the state taxes added, it can get to 50% – HALF of your money! Good news: real estate investing offers huge tax benefits! Bad news: the IRS rules for real estate are extremely compli...
Being savvy about when and how to apply these suspended losses can be a strategic part of your long-term tax planning. Real estate professionals' special allowance If you qualify as a real estate professional by IRS standards (spending more than half of your working hour...
You’re also very good if you’re a real estate professional. But among other things, the rules require you to spend 750 hours or more with your real estate activities. Sort of defeats the purpose of retirement, doesn’t it? The third exception means you get to eventually use your passiv...
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8.1 Please briefly describe any regulations concerning the lending of money to finance real estate. Are the rules different as between resident and non-resident persons and/or between individual persons and corporate entities? The scope of regulations that a lender will face will depend on whether ...
“Tax Rules for Real Estate Professionals,” May 21, 2020 “Interplay of the Rental Real Estate Grouping Election and Real Estate Professional Exception,”JofA,Dec. 2014 “Electing to Aggregate Rental Activities: Better Late Than Never,”JofA,Aug. 2014 ...
and any potential cash flow you receive from your real estate investment, getting a precise ROI may be more complicated. For tax purposes, in particular, you will most likely want to consult an accountant or other tax professional who is familiar with the rules as they apply to real estate....
Internal Revenue Service (IRS) guidance on how certain taxpayers can make a late election to treat all interests in rental real estate as a single rental real estate activity as of October 2011. It explains how to qualify as a rental real estate professional and the rules for grouping ...