REAL ESTATE RENTALS, THE SHARING ECONOMY AND TAXES
Thursday, August 31
Taxpayers renting out homes or spare rooms should be aware of the tax implications of these rentals.When is the rental of a primary residence or vacation home taxable?The Internal Revenue Code provides the rental of a property that is also occupied by the owner (“host”) as a residence for less th...
Rental Income and the Net Investment Income Tax
Monday, July 17
Taxpayers should be mindful that their rental income may be subject to taxes in addition to ordinary income tax.What is the Net Investment Income Tax?The Net Investment Income Tax (NIIT) is a surtax that took effect in 2013. The NIIT was intended to boost tax revenue from Medicare payroll taxes o...
Allocating Between Land and Building When Acquiring Rental Real Estate
Wednesday, June 28
How purchase value is divided up between land and buildings impacts the depreciation tax benefits you get as a real estate owner. Here’s what you need to know.Depreciation for residential and commercial propertiesA tax benefit of real estate investing is the tax shelter provided by depreciation. ...
BEWARE OF PHANTOM INCOME
Wednesday, June 14
Real Expenses vs. Phantom ExpensesAs a real estate investor, it is essential to know the difference between a real expense and a phantom expense. An investor might think a $1,000 roof repair is a good thing since he or she can deduct it as an expense. What if you never had to make that repair in ...
Don't be surprised by a tax liability on a sale of your residence.
Wednesday, June 14
Regularly, clients contact me to discuss the tax consequences of selling their primary residence. It seems there is a lot of misinformation floating around that I aim to clarify below.Rollover proceeds from a saleIt is common for sellers who have been in their homes for quite some time to cite th...
REAL ESTATE INVESTOR VS. DEALER
Monday, May 08
Purchasing real estate assets? This post explains what you need to know about the important distinction between real estate investor and dealer for tax purposes.A real estate developer is taxed differently than a real estate investor. Real estate investors purchase real estate with the intention ...