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Advantages and Disadvantages of Claiming Big First-Year Real Estate Depreciation Deductions

RogerRossmeisl

Your business may be able to claim big first-year depreciation tax deductions for eligible real estate expenditures rather than depreciate them over several years. 179 deduction can be claimed for real estate qualified improvement property (QIP), up to the maximum annual allowance. But should you?

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Defer a Current Tax Bill with a Like-Kind Exchange

RogerRossmeisl

If you’re interested in selling commercial or investment real estate that has appreciated significantly, one way to defer a tax bill on the gain is with a §1031 “like-kind” exchange. For these purposes, like-kind is broadly defined, and most real property is considered to be like-kind with other real property.

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Commercial Real Estate Accelerated 179D Tax Deduction Expanded

Withum

The act expands existing clean energy tax credits and enhances tax deductions to further incentivize the development and use of clean energy products and technologies. 179D allows an alternative method for immediate tax deductions. The modified legislation also allows specified tax-exempt entities to allocate any Sec.

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Investing in Real Estate? How to Qualify for Real Estate Professional Tax Status  

Anders CPA

If you’re a taxpayer with income from rental activities or other real estate investments , it’s important to understand whether the IRS considers you a real estate professional. This consideration impacts the tax treatment of any rental income or losses and, consequently, may result in significant tax savings.

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A Tax-Smart Way to Develop and Sell Appreciated Land

RogerRossmeisl

If you subdivide it, develop the resulting parcels and sell them off for a hefty profit, it could trigger a large tax bill. In this scenario, the tax rules generally treat you as a real estate dealer. net investment income tax (NIIT) for a combined federal rate of up to 40.8%. And you may owe state income tax too.

Tax 243
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Defer Tax with a Like-Kind Exchange

RogerRossmeisl

Do you want to sell commercial or investment real estate that has appreciated significantly? One way to defer a tax bill on the gain is with a §1031 “like-kind” exchange where you exchange the property rather than sell it. However, neither the relinquished property nor the replacement property can be real property.

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Update on Depreciating Business Assets

RogerRossmeisl

The Tax Cuts and Jobs Act liberalized the rules for depreciating business assets. 179 deductions For qualifying assets placed in service in tax years beginning in 2023, the maximum §179 deduction is $1.16 179 deductions can also be claimed for real estate qualified improvement property (QIP), up to the maximum allowance.