Archive for the ‘Tip Of The Day’ Category

How Do the Rich Qualify for the Real Estate Professional Deduction?

If you make less than $100,000 per year and actively participate in your real estate, you can take up to $25,000 of real estate loss against your other income. If you make over $150,00 per year, then you can’t take any of the loss against your other income. If your income is between $100,000 and ...

Real-Life Real Estate Professional Audit Issues

In order to take the real estate professional deduction, you have to have more real estate activity hours than any other business and a minimum of 750 hours. Here’s a question we recently got at USTaxAid. Question: “I have a full time job & have documentation that I spend 1,450 at “work”. I also have ...

Tax Reporting for Real Estate Joint Ventures

It’s common for real estate investors, especially beginning ones, to join up with others on property investing. The problem comes when two or more people get together to invest and do it without a business structure. The default structure when a joint venture occurs without a formal structure is a general partnership. That means you’ll ...

10 Common General Real Estate Deductions

Your real estate deductions for your investment propertie will undoubtedly be different than someone else’s, but here’s a general list to get you started. Mortgage interest: The interest portion of your monthly payments is deductible. Property tax: The property tax that you pay in the calendar year is deductible. If you are playing catch-up with ...

Take Your Real Estate Deductions

The AICPA says that 80% of accountants don’t understand basic real estate accounting and tax. That means you need to either find the rare experienced real estate accountants or you’ll need to get educated yourself. Once you are in business with your real estate business, you can begin taking deductions. Normal deductions include home office, ...