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 information.
All the money-saving details will be explained when you read my new article titled Tax Tips: Warning: Is Your Real Estate Activity a Business or an Investment?
Three ways our fact-filled article can help you:
- You’ll learn why being an investor can be a disadvantage. For starters, if you’re merely an “investor” in the eyes of the IRS, you can’t claim deductions for conferences, conventions, seminars, or similar meetings. Of course, there are plusses to being an investor too. You’ll get all the details when you read the full article.
- We’ll tell you why being in the real estate “business” also has a downside. If you buy and sell real estate for a profit, you do not want to operate your activities as a business. Why? Because you want to avoid “dealer” status. Dealers face a number of huge tax burdens as you’ll learn when you read the full article.
- We’ll give you the lowdown on renting your properties. When it comes to renting, the difference between operating as a business or as an investor is less important. You pay ordinary tax rates on your rental income regardless of whether you have a trade or business. You’ll get all the facts when you read the full article.