Also, note that excessive front-loading may raise red flags with the IRS.The remaining profit can be distributed as bonuses, dividends, or retained within the business, but it's important to ensure that the total compensation (salary plus bonuses) is reasonable and justifiable based on the shareholder's contribution to the business.Remember that working with a tax professional or CPA who specializes in real estate and understands the specifics of your situation is crucial.

You can retain the relevant documents, such as the request from the county and any communication related to the payment, in your records.If the tax authorities have questions about the adjustment, you can provide the documentation at that time.

The Tax Cuts and Jobs Act (TCJA) implemented in 2017 retained the preferential long-term capital gains tax rates, providing lower tax rates for assets held for more than one year.

This will help demonstrate the amount of the loss you are writing off.Interest Rate Changes: If you're modifying the interest rate, specify the original rate and the new rate.Loan Term Changes: If the loan term is extended, provide the details of the extension.Acknowledgment of Default: Include a section where the borrower acknowledges the default and the past-due amounts.Professional Advice: It's a good practice to seek legal or financial advice when structuring the loan modification to ensure it complies with any applicable laws and regulations.Keep Records: Retain copies of all correspondence, emails, and documents related to the loan modification.IRS Reporting: Report the loss on your tax return.

These can reduce your overall tax liability while helping you attract and retain talent.Real Estate Professional Status: Depending on your level of involvement in your real estate activities, you might qualify as a "real estate professional" under IRS rules.

Real estate investing is a new muscle you simply have to grow!

You can save some money by changing the valuation, but you'll retain risk.

I am enjoying it so far and absorbing everything, but since I don't work in real estate regularly, I keep wondering how I can apply  this information in a hands on scenario in real life in order to retain it all more efficiently.

A competent and experienced contractor will pull all the proper permits first, they will not fool around as they want to retain a good reputation with the municipality if they expect to continue working in that respected city.  

Research has shown that learning and retaining the information you've learned is dependent primarily on you carrying out the action.