Have your tenants made improvements to your rental property? If the answer is “yes,” you may be in line for some hefty monetary and tax benefits! You see, under Section 109 of the Internal Revenue Code, at the termination of a lease, the landlord gets the value of tenant (lessee) improvements completely free of taxes. Want to learn how to be a winner at this profitable game? … [Read more...]
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How “related parties” destroy qualified leasehold improvements
Are you a landlord or the lessee? If the answer is “yes,” you can get huge tax breaks when you can take advantage of a qualified leasehold improvement. But if the landlord and the lessee are tax-law defined “related parties,” you can kiss those tax-favored benefits goodbye. For the purposes of a qualified leasehold improvement property, there are fourteen definitions of … [Read more...]
How to turn rental-property losses into tax deductions
Here’s good news for rental-property owners… Your rental property can serve as a valuable tax shelter when you claim tax deductions for your rental-property losses against your income. But to take advantage of this useful tax shelter you need to: Qualify as a tax-defined real estate professional Pass a “material participation test” for each shelter property We’ll … [Read more...]
Deductions for mileage driven to your rental properties
If you own a rental property, no doubt you’re going to visit it from time to time. Maybe there’s a leak that needs fixing. Or perhaps you want to hand over the keys to a new tenant. In any case, if you’re driving to your rental units you need to ask yourself these three questions: Question #1: “For tax purposes, how do I treat a trip from home to my rental … [Read more...]
The right way to handle a Section 1031 rental exchange
Do you own rental properties? Do you want to grow your rental-property business? Then you need to know the ins and outs of the Section 1031 exchange. Mr. Adams did. That’s why he was able to overcome an IRS objection that his Section 1031 exchange failed because his replacement rental-property fit his son’s family’s needs. We’ll explain the Adams case and show you how to … [Read more...]