Today's quiz is brought to you by our member Brandon Hall.
Brandon is a real estate investor and CPA specializing in providing business advice and creative tax strategies for real estate investors.
He writes for our blog, and is a great addition to any forum topic he lends his expertise in!
Take his quiz HERE
If you would like to read more about the quiz topics:
Now that was a pretty good quiz. It left out subjective answers.
Well that was embarrassing. I was only at 60% so I need to do some more study. Amazing, there is so much to learn even when you have been at it a while.
We can all improve.
Awesome quiz - very substantive! 8/10; Not too shabby for a newly licensed CPA. Still so much more to learn!
60% -- I have some work to do =)
Account Closed Thanks for taking the quiz!
Depreciation is meant to track the reduction in value over time. This is the Dictionary's and the IRS's definition. Depreciation is also synonymous with cost recover, so it's really semantics.
You do not need written procedures to elect the DMSH (see IRS 1.263(a)-1(f)(1)(ii)(B)). You do need to make an annual election on your returns indicating that you are applying the DMSH for anything under the $2,500 threshold. You do also need accounting procedures, but they do not have to be written, which means you really just need your books to match your returns.
Thanks for reinforcing that I need to learn some more.:) That was a good quiz Hillary and Brandon. I have not been as active on here as I need to be lately. So Thanks.
The aggregate results were eye opening. Don't let the IRS see them, they'll start auditing real estate professionals at an alarming rate.
I don't know them all but my CPA does. :)
I hire people to answer these questions...
Brandon I like your analogy of the rental business.. needing to be a business to scale to really get traction and create long term wealth.
of course there are outliers.. IE buying rentals in Hot parts of the country that have seen massive appreciation is were much of the True wealth is created... pretty hard to build massive wealth on merely leveraged cash flow alone in a non appreciated market.. in those markets you MUST scale to hit those goals.
And I am sure many gasped when you stated 250k a year salary is dime a dozen.. LOL... for anyone in the mid west or a market were average housing is in the 100 to 150k range... just investing in notes and equities or funds.. and or employer matching for 30 years will create a nice retirement for most.
But the thing about this game is there is no retirement .. who wants to retire.. work until you cannot anymore.. but have fun along the way...
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