Year-End Bookkeeping Cleanup
Thursday, November 12
Most landlords treat bookkeeping as a January chore. Close out the year, hand everything to the accountant, done. That timing is backwards. Tax planning only works while you can still change the outcome, and you can’t plan with numbers you don’t have. If your books aren’t current by December 31...
Short-Term Rental Loophole Deadline
Friday, November 06
Most high earners assume real estate losses can’t touch their W-2 income unless they quit their job and become a real estate professional. That’s not true. But the one strategy that gets around it has a hard deadline, and it’s about 8 weeks away. The short-term rental loophole, in plain English...
Year-Round Tax Planning
Friday, October 23
Why tax planning should not start in April Most real estate investors think about taxes once a year, in April. That approach leaves money on the table, because the real savings happen before a transaction closes, not after. Once you have bought the property, started the business, or taken the tr...
K-1 Self-Employment Tax
Friday, October 02
Does Your K-1 Really Escape Self-Employment Tax? Many real estate investors assume that checking the “limited partner” box on a K-1 means their share of partnership income automatically avoids self-employment tax. A recent federal appeals court decision is a reminder that the label alone does not...
Section 1250 Recapture
Saturday, September 19
A rental sale can create a bigger tax bill than many investors expect. It's easy to assume that all of your profit will receive the normal long-term capital gains rate of around 20%. But depreciation creates a separate layer. The part of your gain tied to depreciation previously taken on the buil...
Documenting Material Participation
Saturday, September 12
If you’re using a short-term rental tax strategy, qualifying for the tax treatment is only part of the job. You also need records that can support what you claimed if the IRS asks questions later. Without convincing documentation of your participation, a loss you treated as non-passive could be ...