Real Estate

There are many deductible expenses connected with owning a rental property. In this article we will focus on expenses regarding interest, advertising, and professional fees, these are expenses you may deduct from your gross rental income so as to calculate your net rental income. Interest The

Let's launch off by looking at the various entity selection types available. Each has benefits and drawbacks. As a rule of thumb, look to protect your property from unsecured creditors and limit your liability. So let's lay out the list and see what we've got here... Note: When forming an entity,

The first time homebuyer $8,000 tax credit has been extended beyond the orginal November 30th deadline.  First time homebuyers now have until April 30, 2010 to entering into a binding contact to purchase a home and must close on that home by June 30, 2010.  For qualifying purchases of principal

The American Recovery and Reinvetment Act put in place in 2009 gives taxpayers a new credit for energy-efficient improvements made to their homes in 2009 and 2010.  A similar credit was available in 2007, but not in 2008.  Home improvements qualifiying for this credit include the addition of

Real Estate Professionals have special rules for reporting and deducting rental income and losses on their personal tax returns (form 1040).  If you are a real estate professional then rental activities that you materially participate in during the year are not passive activities.  This means that

Rental losses for real estate activities are generally considered passive activities and the amount of loss you can deduct is limited.  You can usually deduct more of a loss if you "actively" participate in your rental activity.  Active participation is if you own at least 10% of the rental property

Depreciation is used for items that cannont be fully expensed in the year they were paid for.  For a rental property this would include items such as the building, appliances, furniture, and improvements.  Property that should be depreciated meets the following requirements: You own the

If you own some property and decide to start renting it out, there are a few things you should note for tax purposes.  If you change your home or other property to rental use at any time during the year, then you  must divide the expenses, such as taxes and insurance, between rental and personal