Posts by Brandon Hall, CPA
When are Travel Expenses Deductible?
You never know where your real estate investing will take you across the country or even the globe. As such, it’s important to know when certain business trip expenses are deductible, and when they are not. Better yet, if you learn these rules you can strategically plan for your business trips to be tax-deductible even…
Read Full Article1031 Exchanges: Understanding Taxable Boot and Deferred Gain
Most experienced real estate investors know about the 1031 exchange. But if this is your first time hearing about it, in short, a 1031 exchange allows you to roll the gain from your rental property into the next property. Think back to when you would play Monopoly as a kid (or yesterday if you’re like…
Read Full ArticleHire Your Child, Save Big on Taxes
Owning a business is a stressful endeavor that can be rewarding, both financially and emotionally. One major benefit of running your own business is that you can kick-start your child’s career by hiring them in your business. This will allow your child to develop important skills at an early age. It will also allow your…
Read Full ArticleAre You a Real Estate Dealer or Investor?
Among the many tax benefits available to real estate investors is the ability to pay a reduced tax rate on the gain from the sale of properties. When a real estate investor sells a property, the investor pays capital gain rates. The maximum long-term capital gain rate is 20% for properties held more than 12…
Read Full ArticleShort-Term Rentals: Schedule E or C?
Investors and tax practitioners often ask us to weigh in on whether a short-term rental should be reported on Schedule E or C. Schedule E is where you report rental activities and Schedule C is where you report trades or businesses subject to self-employment taxes. Getting to the bottom of this question is not easy…
Read Full ArticleLandlord Loses on Improvement vs. Land Value Allocation
A Tax Court case, Nielsen v. Commissioner (TC Summary Opinion 2017-31) gives landlords insight into how the IRS will audit land vs. improvement values. The taxpayer owned property in Las Angeles and claimed depreciation deductions on the full purchase price of the property which included the land and buildings. The IRS found this error during…
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