DONNACHINGFANGKAO-LOCATE YOUR REALTY INVESTING

TAX BREAKS

REAL ESTATE INVESTING TAX OBLIGATION BREAKS ARE AMONG THE

LARGE REASONS SEVERAL FINANCIERS ACQUIRE RESIDENTIAL

PROPERTY. AS AN INVESTOR, YOU CAN WRITE OFF ALL KIND OF

THINGS THAT WILL WIND UP DECREASING YOUR TAXABLE INCOME,

AS WELL AS A RESULT, LOWERING THE QUANTITY THAT YOU OWE.

JUST TO PROVIDE YOU A FEELING, HERE ARE SEVERAL OF THINGS

YOU CAN DEDUCT THAT YOU'RE POSSIBLY CURRENTLY SPENDING

MONEY ON IN YOUR REAL ESTATE INVESTING ACTIVITIES:

FANG KAO

TRAVELING TO GO SEE YOUR RESIDENTIAL PROPERTY (MAYBE IT'S ALSO IN

THE EXACT SAME CITY AS YOUR IN-LAWS OR YOUR PREFERRED COASTLINE

VACATION SPOT).

PASSION ON YOUR HOME MORTGAGE FOR THE RESIDENTIAL PROPERTY.

INSURANCE ON THE RESIDENTIAL PROPERTY.

RESIDENTIAL PROPERTY MONITORING, AUDIT, LEGAL CHARGES,

BOOKKEEPING, AND ALSO OTHER SPECIALIST GUIDANCE.

TRAINING AS WELL AS EDUCATION AND LEARNING RELATED TO YOUR

RESIDENTIAL PROPERTY.

REPAIR SERVICES AND UPKEEP AT THE PROPERTY.

HOWEVER, REMEMBER, YOU CAN'T BILL FOR YOUR VERY OWN TIME OPERATING AT THE

PROPERTY, YOU CAN ONLY REPRESENT POINTS THAT YOU PAY ANOTHER PERSON TO DO. SO, THE

NEXT TIME YOU'RE ASKING YOURSELF WHETHER TO PAY THE NEIGHBOR'S CHILD TO TRIM THE

LAWN AT YOUR RENTAL BUILDING OR DO IT ON YOUR OWN, KEEP IN MIND, YOU 'D BE PAYING

HIM WITH PRE-TAX DOLLARS.

DON'T BUY A PROPERTY JUST TO CONSERVE MONEY ON TAX OBLIGATIONS ...

TAX FINANCIAL SAVINGS CAN REALLY ACCUMULATE! THEY CAN TRANSFORM A RESIDENTIAL

PROPERTY THAT PUTS MONEY INTO YOUR POCKET EACH MONTH RIGHT INTO A TAX WRITE-OFF.

HOWEVER, KEEP IN MIND, IT'S NOT ALL FUN AND ALSO GAMES. YOU STILL HAVE THE OBLIGATION

OF LOCATING A GOOD DEAL, MANAGING YOUR PROPERTY, AND OFFERING IT WHEN THE TIME IS

RIGHT. DON'T BUY A RESIDENTIAL PROPERTY JUST FOR THE TAX BENEFITS ALONE (A GREAT DEAL

OF INDIVIDUALS WHO DID THAT GOT ERASED - BANKRUPTED! - IN THE 1980'S WHEN THE TAX

OBLIGATION REGULATION ALTERED AND THEIR TAX WRITE-OFFS WENT AWAY.) ALWAYS MAKE

SURE YOUR RESIDENTIAL PROPERTY PRINCIPLES ARE AUDIO!

UNDERSTANDING WHEN TO MARKET TO MAXIMIZE TAX OBLIGATION BREAKS.

RECOGNIZING WHEN TO MARKET TO OPTIMIZE TAX DAMAGES SPEAKING OF SELLING

RESIDENTIAL OR COMMERCIAL PROPERTY, KEEP IN MIND THAT ONE OF THE PURPOSES OF THE

TAX OBLIGATION LAW IS CREATING MOTIVATIONS FOR YOU TO DO PARTICULAR THINGS. THE

FEDERAL GOVERNMENT IS REWARDING YOU (WITH TAX OBLIGATION BREAKS) FOR TAKING

WANTED ACTIVITIES.

IN THE CASE OF PROPERTY INVESTING, THE FEDERAL GOVERNMENT INTENDS TO AWARD YOU

FOR HOLDING RESIDENTIAL OR COMMERCIAL PROPERTY LONG TERM (OVER 1 YEAR) AS

ECONOMICAL RENTAL REAL ESTATE IN A LOT OF CASES - INSTEAD OF HAVING YOU GET RICH WITH

SHORT TERM FIX-AND-FLIP APPROACHES.

IF YOU HOLD THE BUILDING FOR LESS THAN A YEAR, THE GOVERNMENT TREATS YOUR INCOME

AS TEMPORARY RESOURCES GAINS TAX OBLIGATION, WHICH IS TIRED AT YOUR ORDINARY

EARNINGS TAX RATE (THAT'S HIGHEST OF YOUR TAX BRACES, NORMALLY).

TO GET THE MOST AFFORDABLE TAX RATES, HOLD THE HOME FOR AT LEAST A YEAR AND YOUR

PROFIT ON THE SALE WILL BE TAKEN INTO CONSIDERATION LASTING FUNDING GAINS AND ALSO

THE TAX THERAPY WILL BE MUCH BETTER. CURRENTLY, LONG-TERM FUNDING GAINS TAX RATES

ARE SIMPLY 15%, YET PRESIDENT OBAMA HAS ACTUALLY RECOMMENDED HE WILL INCREASE THE

TAX RATES TO 20-25% ... SO STAY TUNED!).

DONNACHINGFANG KAO

IF YOU DON'T WANT TO PAY ANY KIND OF TAX OBLIGATIONS AT ALL WHEN YOU GO TO MARKET

YOUR HOME, THINK ABOUT TAKING PART IN A 1031 EXCHANGE, OR STARKER EXCHANGE (VERY

SAME THING, VARIOUS NAMES). THIS IS A DEAL IN WHICH AN INTERMEDIARY ASSISTS YOU

MARKET ONE BUILDING AND AFTERWARDS GET ONE MORE COMPARABLE FINANCIAL

INVESTMENT BUILDING. YOU CAN ROLL ALL YOUR MAKE MONEY FROM THE SALE OF THE INITIAL

STRUCTURE RIGHT INTO THE PURCHASE OF THE SECOND STRUCTURE. IF YOU DO - YOU WILL NOT

PAY ANY TYPE OF TAX OBLIGATION ON THE NEW BUILDING! DO YOUR OWN RESEARCH, YET IT

DESERVES GETTING MORE INFO ON 1031'S IF YOU'RE OFFERING A HOME WITH A GREAT DEAL OF

EQUITY AND ALSO INTEND TO ENSURE YOU'LL MINIMIZE YOUR TAX BILL!

REAL ESTATE PROFESSIONAL CONDITION.

LONG-TERM FUNDING GAINS TAX THERAPY ISN'T THE ONLY REALTY INVESTING TAX BREAK IN JEOPARDY ...

THE REALTY SPECIALIST CONDITION IS ADDITIONALLY OBTAINING MORE DIFFICULT TO GET APPROVED FOR.

REALTY SPECIALIST IS AN INTERNAL REVENUE SERVICE CLASSIFICATION WHICH CLAIMS YOU SPEND AT

LEAST 750 HOURS A YEAR OPERATING IN REAL ESTATE INVESTING, AND THAT PROPERTY IS YOUR KEY

COMPANY. IF YOU RECEIVE THIS CLASSIFICATION, YOU HAVE THE CAPACITY TO SUBTRACT ALL YOUR LOSSES

FROM PROPERTY, EVEN IF THEY ARE IN UNWANTED OF $25,000/ YEAR. IF YOU DO NOT QUALIFY, YOUR

REALTY DEDUCTIONS MAY BE LIMITED, ESPECIALLY IF YOU ARE AN EASY INVESTOR NOT ACTIVELY

ASSOCIATED WITH REALTY INVESTING, OR YOU HAVE A PARTICULARLY HIGH INCOME.

ONE MORE BUG-A-BOO IN THE LAND OF REAL ESTATE INVESTING TAX BENEFITS IS THE AMT OR CHOICE

MINIMUM TAX OBLIGATION. THIS IS A TAX THAT STRIKES HIGH EARNINGS EARNERS IF THEY HAVE WAY TOO

MANY TAX OBLIGATION REDUCTIONS, EVEN IF THOSE REDUCTIONS ARE LEGIT. CONGRESS MAINTAINS

COVERING THIS, HOWEVER IT'S STRIKING - AND ALSO HARMING THE MIDDLE CLASS. IF YOU MAKE GREATER

THAN AROUND $130,000/ YEAR THIS MAY AFFECT YOUR HOUSEHOLD, SO CONSULT WITH A TAX

OBLIGATION ADVISOR TO SEE IF YOU'LL HAVE THE ABILITY TO CAPITALIZE ON THE REAL ESTATE TAX BREAKS

YOU'RE EXPECTING.