Interest Rates & the Real Estate Market

At Wealth.Tax, we're super interested in real estate investing and the overall market, so we're watching interest rate dynamics pretty closely.  Recently, the Fed raised rates for the first time since 2018, and there's sure to be fallout from that, which you need to pay attention to as you plan your next move.

Check out this news from CNBC on recent metrics for mortgage refinance activity.

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Depreciation & Cost Segregation


Are you maximizing the tax benefits of your real estate investments? Chances are, you're not!

In this video, we'll dive deep into two major tax savings tips when it comes to real estate: depreciation and cost segregation. These rental property tax benefits should be cornerstone strategies in your overall real estate investment planning.

I'll cover the pros and cons associated with depreciation, as well as go over the timelines you need to be aware of as to when various items (appliances, etc.) can be depreciated.

We'll also take a close look at the 4 main components that go into a cost segregation study, and show you a formula with all the math that goes into it.

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Real Estate Tax Incentives


If you're a real estate investor, and you're paying a lot of tax, you're doing something wrong!

In this video, I'll show you more tactics and strategies for maximizing rental property tax benefits and increasing your rental property cash flow. We'll go over:

-- rental income tax deductions
-- rental property expenses
-- repairs versus improvements
-- tax reduction strategies

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MEMBER FORUM HIGHLIGHT -- Real Estate Professional Status

Q: What are the drawbacks of being a real estate professional (REP)? 

A: This generally hinges on the fact that the REP status is geared towards capturing rental losses that otherwise would not be captured, hence lowering your taxes and putting more money in your pocket.  If you don’t have an issue capturing all your rental losses in the first place, then the stringent REP criteria may actually prove to be a burden to you to maintain.  Another aspect of this deals with whether you’ve aggregated all properties together into one portfolio in order to qualify for REP status; when you go to sell one of these properties, its losses won’t be allowed until you’ve sold the entire portfolio.  

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Tax Issues Related to Renting Your Vacation Home

Do you own a second home at the beach, in the mountains, or some other getaway location, or are you thinking about buying one? If so, then you may have thought about the possibility of renting it out. Though many people would never consider inviting renters into their vacation home, preferring to keep it for themselves and their family, doing so can offset some of the expenses related to the property, and you may even reap a tax benefit at the same time. Whichever route you choose to go, knowing all of the applicable tax rules regarding designated second homes helps you get the maximum financial benefit out of your asset, and keeps you from making tax filing errors.

If You Don’t Rent Your Property - Depending upon your individual tax situation, a designated second home’s acquisition mortgage interest may be able to be included as an itemized deduction. However, there is a limit on the amount of acquisition debt for a taxpayer’s main residence and one additional...

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Attention Real Estate Investors!

Some potentially alarming news published by CNBC last week on the real estate sector -- check it out here and leave us a question or comment.  Are you still planning to buy or are you hitting the sidelines in the face of potential rate hikes? 

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The Power of Real Estate and Oil & Gas Investments

ProPublica continues its revealing series of tax articles exposing the secret methods and tactics of the ultrawealthy to slash their tax bills.

Well, the good news is the methods they're using are not so secretive and are available to you, the everyday investor, as well.

Check out this article examining the benefits of real estate and oil & gas investments from a tax standpoint.  

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MEMBER FORUM HIGHLIGHT -- Get Financing Without a Bank

Q: Are there ways to finance deals without involving a bank? 

A: There are lots of options out there, besides the traditional bank route.  One disadvantage of banks over the others is that banks tend to care more about your credit score.  
One major alternative is to locate private investors and those willing to put up their funds to get behind a deal.  They’ll almost always be more flexible in their terms.  Be diligent in structuring these deals, because if you can achieve a great return for the investors, money will come to you based on your great track record.  
You can also structure deals in such a way as to offer something other than financial capital.  For example, you could lend time, expertise, or some proven system or process to the deal.
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Personal Real Estate


In this video we'll cover a variety of personal real estate planning topics, including:

-- tax benefits of owning a home

-- business use of home

-- reverse mortgage facts

We'll also help you answer the question "should rent out my house or sell it?"

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MEMBER FORUM HIGHLIGHT -- Land Trusts & Real Estate

Q: Is it best to own my rental properties in a land trust owned by an entity (LLC)? 

A: It depends on what you’re trying to accomplish.  From a tax standpoint, both the entity and the land trust will have minimal impact savings-wise.  However, the entity will afford you liability protection (obviously a good thing), and the land trust will afford you privacy (also a good thing if this is something you value).  As always, check with your attorney and advisor before proceeding.

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