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6 November 2024 | 0 replies
The #1 way real estate investors defer taxes to later dates is with a system called depreciation and bonus depreciation.Depreciation is the act of slowly, over time, deducting the initial expense of an asset against your taxable income.Generally over a 27.5 (residential) or 39 (commercial) yr time frame.So each year you can write off a few percent of the purchase price against your income.
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7 November 2024 | 5 replies
Normally this would be taxable.
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12 November 2024 | 171 replies
I'm in a similar position of selling off some rental property and not wanting to give more than necessary to Uncle Sam, but my taxable boot is more likely to be in the $400k range.
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8 November 2024 | 22 replies
So your 2500 in income is actually worth about 3400 a year in taxable income (keep in mind that 15 to 18% return from syndication would be taxable income) Principal paydown would be about 1500 a year.
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1 November 2024 | 5 replies
And outside the exchange you'll have to note which is not non-taxable except for the interest.
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2 November 2024 | 2 replies
S Corp is disregarded pass thru entity; C Corp is a taxable entity itself.
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1 November 2024 | 0 replies
Section 179 of the Internal Revenue Code allows businesses to deduct the full purchase price of qualifying equipment and software up to an annual limit.In 2024, for example, taxpayers can expense up to $1,220,000 of qualified assets.This election can apply to many types of tangible personal property, such as machinery, equipment, and off-the-shelf software, which are used predominantly in your business.Limits on Section 179 ExpensingAs attractive as Section 179 may seem, there are limits.For tax year 2024, the maximum investment limit is set at $3,050,000.If your business places more than this amount in service, the amount you can expense is reduced dollar-for-dollar over this threshold.In addition to the dollar and investment limits, the amount of your Section 179 deduction cannot exceed your taxable business income for the year.This means that even if your business invests heavily in qualified property, the deduction could be limited by the business’s profitability.Also, not all property qualifies for Section 179.Real property, like buildings and structural components, generally does not qualify unless it is "qualified improvement property."
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30 October 2024 | 5 replies
The other thing I use for savings is my cash position in my taxable brokerage account which right now is getting 4.5% interest.
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30 October 2024 | 5 replies
Have your realtor pull the tax records and you can see the difference between the SEV and Taxable value to do the calculation.
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8 November 2024 | 38 replies
Depending on what your income bracket is, this can significantly decrease your taxable income.