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8 May 2024 | 5 replies
Code § 7701 - Definitions, my understanding is that the answer is NO, but maybe I am wrong.As the actual rate of withholding is 15% of the sales price, and as the refund (if any) would be "within 90 days", it can be a major setback for my company´s flipping cash-flow because 15% is way higher than the taxable income (and of course than the tax itself), so we would be in the necessity of capital injections to flip the next properties.If any of you have comments on this, it would be very helpful.Thanks in advance
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9 May 2024 | 159 replies
I do my own taxes so I can see my taxable income reduced every time I add a property into the tax return form.
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8 May 2024 | 14 replies
Judge said: “However, an activity that involves the use of tangible property is not a rental activity if "[t]he average period of customer use for such property is seven days or less" in a taxable year (short-term rental).
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9 May 2024 | 16 replies
Near-term taxable income redux is the objective.
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9 May 2024 | 43 replies
The capital gains you would get from selling the property go back into the IRA tax free or tax deferred, depending on if the account was a Traditional or Roth and the only time you would incur taxes is if you took the money out of the qualified retirement account and took it into your personal name as a distribution.I would never own real estate inside of a retirement account.In your situation of transferring a certain percentage of the property itself instead of cash, you would need to pay a bunch of professionals on an annual basisA) $600+ for an appraiserB) $500+ for the title company to transfer ownershipC) $300+ for your accountant to properly adjust your taxable basis for the rental activity reported on your individual tax return.D) You risk your property taxes being reassessedYou also have to properly split each expense Furthermore, since you are not receiving cash, you would need to potentially find alternative methods to find cash to pay your tax liability.Yes, you are correct, depreciation is not needed/used within an IRA.
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6 May 2024 | 5 replies
A read some articles that some rents may still be taxable which is fine.
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5 May 2024 | 3 replies
These deductions are what we want to focus on.Deductions help REDUCE your taxable income.
5 May 2024 | 5 replies
Any suggestions on how I can lower my taxable income is appreciated.
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4 May 2024 | 7 replies
If you get and use a big loss in year 1 of a syndication (the tax benefit), it is reducing your taxable basis in the deal.
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4 May 2024 | 15 replies
Where do I deduct that $60k from my taxable income?