Posts by Brandon Hall, CPA
2021 Year-End Tax Strategies
As the year comes to a close it’s a good idea to review your tax position and determine if you can make any last-minute moves to reduce income tax. In this article, we’ve broken out year-end strategies for you to consider during the final weeks of December. Note that these strategies should generally be implemented…
Read Full ArticleThe Build Back Better Plan Passed the House… What’s In It?
This morning the House voted to move the Build Back Better plan forward. It now awaits a Senate review and vote which is expected over the coming weeks. We have performed a cursory review of the bill to identify items that may be of interest to real estate investors. The bill has changed a bit…
Read Full ArticleWhat’s In Biden’s Tax Bill?
At the end of October 2021, the Democrat’s updated budget reconciliation bill (aka Build Back Better plan) was released and is expected to be voted on soon. The bill looks very different than September’s version and doesn’t include many of the tax increases real estate investors were fearful about. Today’s article discusses what is in…
Read Full ArticleWhat Closing Costs are Deductible?
There are many closing costs associated with purchasing rental real estate. These closing costs are reported on your Closing Disclosure and, for tax purposes, are treated as one of the following: Currently deductible cost Cost added to the “loan basis” and amortized over the life of the loan Cost added to the “building basis” and…
Read Full Article2021 Vehicle Purchase Deductions for Landlords
Do you need a new business vehicle? Perhaps one that you can lug rehab materials around in or drive to your rentals? And do you need tax deductions this year? Real estate investors who are running a trade or business (most landlords are) can claim a deduction for purchasing a new or used vehicle. And…
Read Full ArticleAre ATM Investments Passive or Non-Passive?
A couple of months ago, a client approached us at The Real Estate CPA (our tax firm) and was excited to tell us about this new investment opportunity that would eliminate their tax bill. They explained it as being similar to a real estate syndication in that they invest some amount of money and, in…
Read Full ArticleInvestors: How to Guesstimate Tax Losses You’ll Get from a Syndicate
Real estate syndications are on the rise and they are appealing because they offer great returns with the promise of no work. For the uninitiated, a syndicate is a structure where a couple of people (the “sponsors”) will find a large real estate deal and raise money from investors to buy the real estate. This…
Read Full ArticleWhat Does ‘Material Participation’ Mean?
When a real estate investor becomes a landlord, they often look into tax breaks associated with owning rental property. There are many tax breaks associated with owning rental real estate. Ordinary expenses like insurance, property taxes, and repairs can be deducted in the same year incurred. Larger improvements are “capitalized” and “depreciated” over a long…
Read Full ArticleHow to Interpret Form K-1 (And Apply the Passive Activity Rules)
You invested in a syndication, fund, or decide to go into business with a friend. An LLC is formed and all activity for the partnership is reported on Form 1065. You are then sent a Form K-1 reporting your share of the partnership’s activity. How do you know the Form is accurate? And how do…
Read Full ArticleWill Your Mileage Log Withstand IRS Scrutiny?
Business mileage is a tax deduction available to most real estate investors. As you wear your car down traveling between rentals, builds, flips, and client sites you can and should keep detailed records of the trips because the deduction can really add up. In 2021, every business mile you travel qualifies for a 56 cent…
Read Full Article