$12,000 Door Replacement: Repair or 39-Year Asset?
When a five-figure commercial building expense hits your desk, the first question is simple: Can you deduct it, or must you depreciate it over 39 years? Consider a recent example. An office building owner replaced a failed sliding glass door and frame at a total cost of $12,000, including removal and installation. The new unit […]
Late Filing Costs Estate $1.5M—Will Yours Be Next?
With today’s $15 million federal estate and gift tax exemption ($30 million for married couples), it’s easy to believe estate tax planning is no longer a concern. But a recent Tax Court case proves otherwise—an estate lost $1.5 million simply because a portability election was not properly and timely filed. Here’s the key issue: When the […]
Husband-and-Wife LLC—Do They Have to File a Partnership Return?
Many married couples form an LLC to own rental property to obtain liability protection. After they create the LLC, they often ask an important tax question: Does the LLC force them to file a partnership return? The answer depends largely on where they live and how they own the property. Federal tax rules treat any […]
Want to Leave the U.S.? You May Have to Pay These Taxes
When you leave the U.S. to live in another country, you essentially have two choices from a tax perspective, both of which can cost you a pretty penny. First, you can simply leave the country and take up residence elsewhere. But if you choose this option, beware: the U.S. continues to tax you on your […]
Defining “Real Estate Investor” and “Real Estate Dealer”
I have great news! You can have in your real estate portfolio both investor and dealer properties. This distinction is significant for tax purposes. Here’s a snapshot of the potential tax differences: Suppose you profit $90,000 from a property sale: As a dealer, your tax could be up to $46,017 if you’re […]
5 Ways To Reduce Taxes On Real Estate Investments
Like every investment opportunity, real estate has the potential to make investors a lot of money—but it can come with unexpected tax liabilities. Investors and property owners can help reduce their tax burden by applying strategies designed specifically around their investments and assets. From managing ownership to selling properties in installments, here are the five […]