Introduction A common question we receive from our real estate investor clients at Midwest CPA is “Can land be depreciated?”. The short answer is no, but the topic is more complex than it seems. Once it’s established that land cannot be depreciated, the next question arises: “How much of the property purchase price should be …
Introduction In the realm of house flipping, every dollar counts when it comes to profitability. However, a prevailing myth has led many to believe that there are limited options for tax savings, particularly since house flippers are classified as dealers by the IRS. Consequently, each house flip is often carried out with minimal tax efficiency, …
Back to Learning Center Introduction Real estate professional status, commonly referred to as REPS, is a powerful tax planning strategy that can often result in thousands of dollars in savings for real estate investors. However, it is a very complicated and closely monitored portion of the tax code, so you need to be careful. Avoid …
Qualify as a Real Estate Professional and Save Thousands Read More »
Overview The Tax Cuts and Jobs Act of 2017 increased Bonus Depreciation from 50% to 100% for assets placed in service between September 27, 2017, and January 1st, 2023. In this article I’m going to go over what Bonus Depreciation is, what happens now that the 100% deduction has expired, and how it will affect …
Is Bonus Depreciation Going Away for Real Estate Investors? Read More »
Dear IRS, I am writing to you to cancel my subscription. Please remove my name from your mailing list. – Snoopy One tax strategy high income W2 employees who do not qualify as real estate professionals can implement is utilizing depreciation on short term rental properties to create losses that can be offset against their …
Do You Materially Participate In Your Short-Term Rental? Read More »
