Want to Talk Tax? Upcoming Podcast Episode Needs Your Questions!!
An upcoming episode of The BiggerPockets Podcast will feature BOTH @Amanda Han and @Brandon Hall answering YOUR questions about taxes - the new tax laws and how they affect regular people AND real estate investors.
What do you want to know? Ask away!
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Real Estate Agent CO (#FA100049656)
- https://www.biggerpockets.com
- [email protected]
- Podcast Guest on Show #261
Thanks Donald, however, I'm more concerned about my income tax and capital gains tax liability on receipt of the money.
Originally posted by @Eric Groos:
Thanks Donald, however, I'm more concerned about my income tax and capital gains tax liability on receipt of the money.
As far as you paying income or cap gains, if it's classified as a gift, the recipient never pays taxes unless the donor would be required to pay and doesnt. Although it's takes quite a substantial lifetime amount to have to pay. (Currently 5.49 million lifetime gifted iirc)
So under normal circumstances you should be able to accept a gift and pay no taxes, income or otherwise. Although like I said, confirm with your CPA.
I hear new tax laws have no negative impact on commercial real estate investment since the tax limitations are limited to residential investment properties e.g. tax deductions limitations, flow thru restrictions etc. is that true.
Does new tax law impact deductions for residential investments and not commercial.
What is the best type of business to set up before beginning investing in real estate? LLC, LLP Corp, etc.
Private lending tax implications when using line of credit. Suppose you lend at 10% and use a line of credit from a bank at 6%. Regarding the tax implications would you be subject to paying the difference in taxes. Say 4%?
Also tax implications in general on private lending, recommendations on how to keep track the amount to pay on taxes.
Will interest form HELOC's that are used to finance real estate or renovations till be tax deductible?
Depreciation Recapture. What happens when I have owned a rental property for 7 years and have depreciated it by say $10,000 each year. When I sell it will I have to pay back all the taxes on the depreciated amount at my full tax rate - fed plus state. Any strategies to lessen the tax bite? I probably won't do a 1031 exchange as it just kicks the can down the road.
I’m about to sell a duplex that I live in and rent the other side out. How is that handled from a 1031 perspective? Can I 1031 the gains from the rental side but not the primary residence side?
I have only lived in it for a little over a year, so a personal exemption on cap gains isn’t possible.
Cheers!
With regards to the 20% pass through deduction in the Tax Cuts and Jobs act: What is the best way to uncouple depreciation from rental income to maximize the 20% deduction on pass through business income while also still taking the depreciation?
Was thinking one entity to collect rent and another to hold and depreciate?
Big fan of both your blog posts and podcasts, thanks for the nuggets!
How does the most recent tax plan shift YOUR real estate strategy? I understand the changes and how I'm considering my own portfolio, but I'd like to hear others' thoughts as well.
is the time you spend on your business tax deductible? I understand mileage, office supplies, business-related lunches, etc. but what about hours? I heard of you spend 750 hours during the year, you can deduct up to $25,000.
Looking into different legal entities, (LLC, LP, S-Corp, Series LLC... ) what are the tax benefits that can be realized in one entity that would not be the case in the other? (Depreciation, profit/loss, expense basis...) does it matter if you do more flipping, rentals, brrrr... Thanks BP! 👍🏼
I am not sure how would one qualify as a real estate professional?
What kind of activity ( searching and going to look at property with realtor, discussing growth with property mgmt, going to local REI meet-ups to network, advertising for vacant rental, printing , folding and sending letters to potential sellers, working with CPA)
qualify?
Do one just record the hours?
I have a catering business and my husband has a W-2 job.
My business is seasonal so I spent considerable time doing lot of these activities and more.
Just like to know the qualification of real estate professional.
I would like to hear her talk about taxes and depreciation on newly constructed rental properties. With a new build we will have a cost basis for every part of the property. Which Items can I accelerate depreciation? Any other benefits that I may not have realized about newly constructed properties? Since most of the things talked about on BiggerPockets is existing property purchases.
Ch-ch-ch-ch-changes... Makes the most sense to me to focus primarily on the recent changes to the tax law and how we can best leverage them, in my case in regards to buy and hold rentals. There is already tons of information in the forums, books etc. on the basics.
Clarity on taxes pertaining to house hacking would be nice. My tax lady has not inspired me with confidence this year on my taxes. I have a 3/3 SFH and rent 2 bedrooms out. 1075 is roommate rental income and mortgage is 1250.
I plan to buy a duplex or fourplex this year as my next house hack and do it a few more times before I look to small commercial multifamilys.
Originally posted by @Charles H.:
I am currently looking for my first deal. If a deal fell through during inspection, can I somehow deduct all the money spent for this deal (travel, inspection cost, etc...) ?
Thanks for this upcoming podcast!
Thanks @Brandon Turner and @Scott Trench for asking my question!
Very informative episode again.