You don’t have to sell real estate for a living to deduct your rental losses. But to deduct your rental losses against your business and investment income, you need to become a tax code “qualified person” often called in tax law a “real estate professional.” You want qualified person status. With this status, your rental properties can qualify as tax shelters. Best of all, … [Read more...]
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Avoid these four IRS traps!
No one likes to see their business lose money. But a net operating loss can actually produce one of the best tax deductions the IRS has to offer. You see, a net operating loss can generate tax refunds from prior years and a tax shelter for future years. But be careful! The IRS has set four traps that you must avoid if you want your net operating loss to work to your … [Read more...]
3 ways to beat the “hobby loss” rules
There are many unfair IRS rules that badly hurt taxpayers. Perhaps the worst of the lot are the “hobby loss” rules. Here’s the story… If your business has produced losses in multiple years, you’ll want to use these losses to offset your other taxable income. But if the IRS decides your business really isn’t a business at all, but instead is a mere “hobby,” you’ll lose your … [Read more...]
A quick guide to real estate options
Using options can be a great way to increase profits on real estate investments and rentals. But you have to be careful and avoid a number of dangerous traps. That’s why my new article makes “must” reading. It can help you avoid making costly errors and show you how to maximize profits. Want to find out more? Read my new article titled Tax Tips: Make Sure Your Real … [Read more...]
Be careful gifting business property!
Whoever said “It’s better to give than to receive” never read the tax code. You see, if you make a gift of business property the wrong way, you could wind up losing valuable tax benefits. How can you make gifts of business property to your children or others and avoid problems with the IRS? Easy. Read my new article titled Tax Tips: Beware When Gifting Business … [Read more...]