Are You an Active Real Estate Investor?
Investing in real estate really complicates your taxes. You probably already know that.
But real estate tax laws also provide investors with numerous tax savings opportunities. If you’re a real estate investor, for example, you probably have more opportunity that you even realize to create legitimate tax deductions that reduce your end-of-year tax bill. And many real estate investors also have opportunities to enjoy truely tax-free income.
Sure, you could try to get this information from the Internal Revenue Service’s website, perhaps by carefully reading through the information provided in IRS Publication 527.
But what’s different about the approach this 50pp e-book takes is that Steve’s going to focus on how you use the rules to your advantage.
Note: Available in December 2018, after we’ve updated the earlier edition of this monograph for the new tax law.
Steve’s going to talk about:
- Basics of Real Estate Taxes, including how real estate tax accounting works, the ABCs of maximizing your real estate related tax deductions and tricks for avoiding the passive loss limitation rules.
- Tactics for lowering and even eliminating taxes on profitable real estate investments, including special tips for real estate flippers and for long-term investors.
- Tricks for turning vacation homes and other recreational properties (including timeshares and boats) into tax shelters that produce either large deductions or tax-free income.
- Risks and rewards of converting a primary residence into a rental, including a scary warning about the gigantic mistake you never want to make.
- Tapping retirement savings accounts such Individual Retirement Accounts, self-directed 401(k) plans and Simple-IRA accounts for making direct real estate investments.
- Using LLCs and corporations in the right way for real estate investing, including the best state to incorporate in and when an S corporation can save you thousands in taxes.
Real Estate Tax Loopholes & Secrets also provides three bonus appendices to help investors think more precisely about their investing activities. Appendix A explains how and why to calculate income capitalization rates for residential rental property—and how to use this information to make smarter investment choices. Appendix B presents a simple approach for analyzing vacation homes. Finally, Appendix C describes how Microsoft Excel users can use more sophisticated investment analysis techniques like internal rate of return and net present value measures to assess their investments the same way that billionaires do.
In short, Real Estate Tax Loopholes & Secrets gives you the inside scoop on how successful and smart real estate investors play the real estate investment game in a way that dramatically reduces the taxes they pay.