Category: Taxes
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Short-Term Rental Tax Loophole For Physicians and Dentists
Short-Term Rental Tax Loophole For Physicians and Dentists [Editor’s Note: Today’s article is a guest post from my personal accountant Thomas Castelli, CPA. Thomas is a Partner at Hall CPA, PLLC, an accounting firm that helps real estate investors keep more of their hard earned dollars in their pockets and out of the government’s with proactive tax…
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Minimize Tax, Maximize Returns: The Art of Real Estate CPAs
Minimize Tax, Maximize Returns: The Art of Real Estate CPAs Navigating the real estate investing world while balancing a high-demanding profession, such as medicine or dentistry, can be challenging. Throw in managing finances and deciphering the tax code, and it swiftly becomes a jigsaw puzzle. As a busy periodontist and family man stepping into the…
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Cost Segregation Study: How It Works For Real Estate
Cost Segregation Study: How It Works For Real Estate If you decide to invest in real estate, then you’ll quickly realize that you’ll potentially face several costs, such as: purchase price of a property renovation expenses land improvements Fortunately, a cost segregation study can help investors reduce their tax liability and free up cash for future investments.…
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Understanding Passive Activity Loss Rules And Limitations
Understanding Passive Activity Loss Rules And Limitations If you invest in real estate, it’s crucial to pay attention to your property’s financial and physical aspects. And understanding tax regulations is one of those financial considerations. An often misunderstood tax law is how the passive activity loss rules (PAL rules) work. New Passive Investor Circle members often inquire about these rules and…
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Schedule K-1 Tax Form: What To Know As a Passive Investor
Schedule K-1 Tax Form: What To Know As a Passive Investor Tax advantages are one of the primary motivations for investing as a limited partner (LP) in real estate syndications. These benefits are passed on to the LPs through an IRS document called the Schedule K-1 tax form (Form 1065). If you’re in a business partnership, this…
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How Does The Federal Solar Tax Credit Work? (2023 Guide)
How Does The Federal Solar Tax Credit Work? (2023 Guide) The United States solar business has grown by over 10,000% since the federal government passed the Solar Investment Tax Credit (ITC) in 2006. This credit, also known as the Residential Clean Energy Credit, is a federal tax credit that allows you to deduct up to 30% of the cost of your…
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Top Advantages Of Real Estate Professional Tax Status
Top Advantages Of Real Estate Professional Tax Status Real Estate Professional Status (REPS) gives individuals unique tax benefits that can significantly impact their financial outcomes (especially physicians and dentists). The Internal Revenue Service (IRS) sets strict guidelines to qualify for real estate professional tax status, which offers distinct advantages in reducing taxable income. Achieving REPS can be…
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How To Avoid Depreciation Recapture Tax On Rental Property
How To Avoid Depreciation Recapture Tax On Rental Property One of the reasons that kept me from investing in rental real estate was trying to understand what all of the terms meant. Trying to learn this brought back vivid memories of dental school where it seemed that the teachers were speaking a differerent language such…
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How To Choose A Real Estate Tax Accountant
How To Choose A Real Estate Tax Accountant Are you tired of having a HUGE tax bill? Most professionals are and look into investing in real estate to help lower some of their tax burden. I started investing in real estate syndications several years ago and quickly realized that having a good real estate accountant on…
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Navigating the IRS Audit Process: What You Need to Know
Navigating the IRS Audit Process: What You Need to Know As a doctor, one of the worst things to hear is that you’re getting sued. Another issue that doesn’t sit well is that you’re potentially facing an IRS audit. I understand that a tax audit might be an inconvenience, but it’s usually not much more…
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10 Tax Strategies for High Income Earners: Avoid the Tax Man
10 Tax Strategies for High Income Earners: Avoid the Tax Man If you make a lot of money, then there’s a good chance that you’re paying too much to the tax man. High-income earners understand that their biggest expense during their lifetime is taxes. No one wants to pay more in taxes than they have…
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5 Ways To Defer Capital Gains Tax When Selling Real Estate
John Sculley once said, “Timing in life is everything.” And when it comes to investing, developing the best timing to finalize tax planning can determine how effective they’ll be. I love passively investing in commercial real estate. Especially real estate syndications. Depending on when a property is sold, it can generate huge profits along with…
