How do you structure your real estate activities? Are you running a business or simply investing in properties? The answer can have big tax consequences! EXAMPLE: If you want to take a trip to a real estate seminar you may be able to deduct all the related expenses… or maybe not. It all depends on how you’ve structured your activities. Which is why you need more … [Read more...]
Passive income and losses
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How to make your rental-property activity, tax deductible
Your rental property provides shelter for your tenants. And it can also provide a nice tax shelter for you if you know how to play your cards right. One great way to make sure your rental properties stay tax deductible is for you or your spouse to qualify as a “real-property trade or business.” What does that involve? Is it difficult to attain this status? We’ll … [Read more...]
Four ways to turn passive losses into deductions
Selling your rental property? If the answer is “yes,” I’ve good news for you. The IRS will now allow you to deduct all those losses you couldn’t deduct in past years. Uncle Sam calls those past, denied losses, “suspended losses.” And to make sure that you can now claim all your formerly suspended tax deductions, you need to avoid the hidden traps the IRS has set for … [Read more...]
Three great ways to escape the 3.8% Obamacare tax
Do you own rental property? If you do, I’ve got some good news for you… The IRS just released new safe-harbor rules that make it easy for some owners of rental real estate to avoid the dreaded 3.8% Obamacare tax! How can you legally beat the Obamacare tax that applies to last year, this year, and future years? I’ll explain three nifty escape plans when you read my new … [Read more...]
Five ways to avoid the new Obamacare tax
Watch out! The new Obamacare tax is coming. That’s right. The new 3.8 % Obamacare tax on net investment and passive income makes its unwelcome debut on your 2013 tax return. You may hear the new tax referred to as the: Obamacare tax Net investment income tax (NIIT) Medicare tax Whatever you call it, the new tax can hurt you a lot, unless you know what you’re … [Read more...]