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...]
Passive income and losses
Sorted by Date
Do Not Make This Mistake When Your Second Business Loses Money
If your second business or third business is losing money, you know what pain is. But don’t add to your troubles by losing the chance to claim an immediate tax deduction. And that’s easy to do if you don’t show the IRS that you are “materially participating” in all your businesses. We’ll tell you how to get all the deductions coming to you, and make the best of a bad … [Read more...]
Tax Secrets of Renting a Bedroom in Your Home
Do you have a spare bedroom(s) that you’d like to rent out? Go right ahead. I’m sure you’d like to pocket some extra cash and put that spare room to use. But be careful. You see, the IRS has set some dangerous traps for you that could cost you big money. If you want to stay on Uncle Sam’s good side, take my advice and read my new article titled Tax Tips: Secrets to … [Read more...]
How to avoid the “self-rental” trap
Do you rent property to your business? Then be careful. You see, under the IRS’s “self-rental” rule, you could lose money in two painful ways. You could forfeit the juicy tax breaks you’re expecting. You could wind up paying unexpected taxes. And remember, this is true even if you create a separate entity that rents the property to your business! What can you do to … [Read more...]
Three traps rental-property owners should avoid
When it comes to deducting mortgage interest on your home, the tax law is pretty straightforward. But when it comes to deducting mortgage interest on your rental property, it’s a different matter entirely. You see, Uncle Sam has set some traps for you that can cost you big time. Want to learn how to avoid three major rental-property interest-deduction traps and come out … [Read more...]