All Forum Posts by: Bette Hochberger

If you're a real estate professional, the home office deduction can be valuable. Here's what you need to know:

1. Exclusive and Regular Use: The space must be used exclusively and regularly for business.
2. Principal Place of Business: The home office must be your principal place of business.
3. Calculating the Deduction: Choose between the simplified method (a flat rate per square foot) or the regular method (actual expenses).

How do you manage your home office deductions? Any tips to share? Comment with yours!

Hi all!

Flipping houses can be profitable, but it's essential to understand the tax implications:

1. Ordinary Income: Profits from flips are typically considered ordinary income, not capital gains.
2. Self-Employment Tax: If flipping is your business, you may owe self-employment tax.
3. Expense Deductions: Deduct direct expenses like materials, labor, and selling costs.
4. Holding Period: Short-term vs. long-term holding affects tax treatment.

What challenges have you faced with taxes when flipping properties?

1031 exchanges are a powerful tool for real estate investors. Here's a brief overview of how they work:

1. Like-Kind Property: The property you acquire must be similar to the one you sell.
2. Timing Rules: You have 45 days to identify potential replacement properties and 180 days to complete the purchase.
3. Qualified Intermediary: You must use a qualified intermediary to facilitate the exchange.
4. Tax Deferral: Properly executed, a 1031 exchange defers capital gains tax until you sell the new property.

Have you ever done a 1031 exchange? Share your experience or ask questions below!

Hi everyone,

If you own rental property, it's essential to maximize your tax deductions. Here are some tips:

1. Depreciation: Remember to depreciate the property and its improvements.
2. Repairs vs. Improvements: Repairs can be deducted in the year they're made, while improvements must be depreciated.
3. Travel Expenses: If you travel to your rental property for maintenance or management, those expenses may be deductible.
4. Home Office: If you manage your rental property from a home office, you may be able to deduct related expenses.
5. Professional Services:  Fees paid to accountants, lawyers, or property management companies are deductible.

What strategies have worked for you in maximizing deductions?

Hello everyone!

As a CPA specializing in real estate taxes, I often get asked about the basics. So, let's start with an overview:

1. Property Taxes: These are local taxes levied by the county or municipality on real estate. The amount is based on the assessed value of the property and the local tax rate.

2. Capital Gains Tax: If you sell a property for more than you paid for it, you may owe capital gains tax. The rate depends on how long you've owned the property and your income level.

3. Mortgage Interest Deduction: You can deduct the interest paid on a mortgage used to buy, build, or improve your home.

4. Depreciation: For investment properties, you can depreciate the property over a set period, reducing your taxable income.

5. 1031 Exchanges: This allows you to defer capital gains tax by reinvesting the proceeds from a sale into a similar property.

Feel free to ask any questions or share your own experiences!

Dealing with skyrocketing property taxes? You're not alone. Join the conversation to learn about the process of appealing your property tax assessment. Whether you're challenging the valuation of your home or investment property, understanding the appeal process and gathering supporting evidence can make a significant difference. Share your experiences and advice with fellow homeowners and investors below!

Hey investors! Let's talk about leveraging tax strategies to optimize your real estate investments. From deductions for mortgage interest to depreciation benefits, there are numerous ways to minimize your tax liability and maximize your returns. Have questions or tips to share? Let's swap insights and make your taxes a breeze!

Are you a new homeowner or investor navigating the maze of real estate taxes? Let's break it down together! Real estate taxes vary depending on location and property type, but they typically fund local services like schools, roads, and emergency services. Want to know more about how these taxes are calculated and how they impact your bottom line? Join the discussion!

 Definitely! I'll make another post about that. Florida is a real concern on insurance.

Yes!