Posted by daveowensfl On February 1st
If you are a real estate investor, understanding depreciation rules is critical to making good decisions. The most common misconception is that the tax rate on a sale never exceeds 15%. This is rarely true for investment real estate. Please read the entire article because there are some sneaky nuances that every seller should know.
Technically, depreciation is a noncash expense that reduces the value of an asset as a result of wear and tear, age, or obsolescence. In layman’s terms, it is the process of expensing tangible assets over their expected lives (as determined by the IRS). I will focus on real estate in this article. The depreciation rules for equipment are completely different. For most businesses, working assets like computers are expensed via a technique called Section 179, which allows a business to expense the entire asset cost in one year. Real estate assets do not share this benefit. Read the rest of this entry »
Posted by danfisher On October 26th
We’ve got less than two months before the current Federal Estate Tax and Generation Skipping Transfer tax rules expire. That means that as of today we do not know what the estate tax rates will be after 2010 and with Congress on (another) break it looks less and less likely that the current Estate tax laws will be extended beyond 2010. Unfortunately we do not know if the Estate tax laws are going to return to pre-2001 numbers or if an entirely new set of Estate tax laws will be implemented in including the possibility of retro-actively collecting estate taxes for 2010. This fact is what is causing the current state of confusion and uncertainty amongst many individuals, attorneys, and CPA’s. Read the rest of this entry »
Posted by brandonhall On September 27th
For every client that buys or lists a house, there is likely a retirement plan belonging to that client that can be self-directed into Real Estate. Many Realtors have started to take advantage of self-directed IRAs. After all, in this economy, many people feel that there are some pretty good real estate deals out there right now. However, a good portion of those who feel this way, do not have the cash to take advantage. That is until they realize they can use money in their IRA to purchase real estate. Read the rest of this entry »
Posted by daveowensfl On August 3rd
Savvy Sanibel and Captiva real estate investors are always looking for deals, and now may be the best time. The Golden Rule of real estate investing has not changed – the profit is made by purchasing at the right price and not over paying. The rule on Sanibel and Captiva has never been truer. For buyers getting property at the right price, the tax laws have never been more favorable. Read the rest of this entry »
Posted by theresaknower On June 9th
No matter where you go, or who you talk to, the SWFL real estate market is always a topic that sparks an emotional response. Buyers and sellers alike are anxiously waiting for the “bottoming out” that everyone has been saying is eminent since 2008.
Short sales and foreclosures are one of the hot topics that industry professionals and investors like to talk about. Even considering what a good deal they are, one would wonder who would be interested in buying a property that is in need of major rehab or could take up to six months to close. Read the rest of this entry »
Posted by daveowensfl On May 10th
One of the most complicated areas of self directed IRAs is Unrelated Business Income Tax (UBIT). It is commonly called UBIT. In certain situations, an IRA can owe taxes. UBIT will apply to specific types of accounts: Traditional IRAs, Roth, Simple, SEP and Educational Savings Plans (ESA). UBIT will not apply to 401(k) plans. It is important to discuss with your tax advisor the consequence of UBIT and how it will affect you. Basically, tax is owed on the non-IRA portion of an investment; usually it applies to the financed portion of investment. Read the rest of this entry »
