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11 October 2023 | 5 replies
This can reduce your taxable income and, therefore, your tax liability.Section 179 Deduction: This deduction allows you to expense the cost of certain types of business equipment and property, potentially reducing your taxable income.
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26 January 2022 | 2 replies
I think investors can use expenses to reduce their taxable income, with the hope of reducing it to zero.
19 October 2023 | 6 replies
By keeping track of these expenses and providing accurate documentation, you can lower your taxable income and, consequently, your tax bill.2.
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17 October 2023 | 3 replies
But the passive investors only gain 90%/50 = 1.8% ownership each, while you gain 10% ownership without outlaying any cash.Is this considered to be a taxable event?
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9 November 2023 | 10 replies
These losses can help reduce your overall taxable income, potentially resulting in a lower tax liability.Active losses are generally applied first against your other sources of active income (like W2 income) and then against passive income.
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20 October 2023 | 10 replies
From my experience we have found typically the depreciation is the only levage to reduce my W2 taxable income.
17 October 2023 | 0 replies
These deductions can significantly impact your taxable income, reduce your tax liability, and ultimately amplify your investment returns.
17 October 2023 | 0 replies
The goal is to identify and separate certain components of a property, such as appliances, flooring, and lighting, that have shorter depreciable lives from the building itself, which typically has a longer depreciable life.Key Benefits of Cost Segregation:Cost segregation can yield several benefits for real estate investors:Tax Savings: By accelerating depreciation on specific property components, investors can reduce their taxable income and lower their overall tax liability.Improved Cash Flow: With lower tax bills, investors have more cash at their disposal.
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21 October 2023 | 2 replies
Transferring money from your Health Savings Account (HSA) to your bank account is not considered cashing out, but there are specific rules and tax implications you should be aware of when handling HSA funds.Transfers to Bank Account: If you transfer money from your HSA to your bank account, it's generally not considered a taxable distribution.
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22 October 2023 | 4 replies
Rental income is considered taxable, but you may also be eligible for deductions related to the property's expenses.Deductions and Expenses:Keep detailed records of all expenses related to the renovation, interest on mortgages, property taxes, insurance, and maintenance costs.Consult a tax professional to ensure you're taking advantage of all available deductions and tax credits.Claiming Losses:You may want to explore the possibility of claiming any financial losses you incurred due to the builder's insolvency.