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Updated almost 6 years ago on . Most recent reply
How does the new tax laws benefit real state?
Keep hearing about new tax law, but haven’t heard how it will actually benefit us. Can someone please explain it where I can understand what this all means. Tax laws for Dummies, keep it simple lol
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#1 Tax, SDIRAs & Cost Segregation Contributor
- Tax Accountant / Enrolled Agent
- Houston, TX
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#1 Tax, SDIRAs & Cost Segregation Contributor
- Tax Accountant / Enrolled Agent
- Houston, TX
Originally posted by @Carson Plant:
Keep hearing about new tax law, but haven’t heard how it will actually benefit us. Can someone please explain it where I can understand what this all means. Tax laws for Dummies, keep it simple lol
At 20+ properties, you have a CPA I assume, and these questions are really for him.
Shortest possible answer, with technical terms in parenthesis:
1. If you have positive net profit after all deduction, including depreciation, then your tax rate on this rental profit might be lower than before. (The 20% QBI deduction)
2. You have new options for faster depreciation of some work done to the properties. (100% bonus depreciation and expanded Section 179.)
3. You might have a bigger deduction for using your vehicle in business. (Depreciation of listed property.)
4. You have some new strategies for deferring capital gains on sold properties. (Opportunity zones.)