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The Ins and Outs of Real Estate Income: Tax Planning for Short-Term Rentals

CTP

Using real estate as a source of income is only becoming more popular with the advent of sites like Airbnb and VRBO that enable homeowners to earn extra cash from property they already own. Taxpayers who are new to leveraging real estate for income may be unfamiliar with the tax loopholes available to them.

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Pros and Cons of Different Types of Real Estate Funds

Cherry Bekaert

When investing in real estate funds , especially amid a volatile macroeconomic landscape, it is imperative to know the differences between the various types of funds. Pass-Through Deduction – 2017 tax reforms allow REIT investors to deduct up to 20% of combined qualified income, including qualified REIT dividends from income tax.

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Using an Income Tax Preparation Service: Is It Worth the Cost?

MyIRSRelief

When it comes to tax season, many people are faced with the decision of whether to prepare their own taxes or use an income tax preparation service. While it may seem like an added expense, there are many benefits to using a professional tax preparation service that make it well worth the cost.

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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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Reducing your Tax Liability as a Multi-Family Real Estate Investor

Withum

Real estate investors generally want to do everything possible to maximize their return on investment when investing in residential rental properties. However, you will pay more in income taxes later when the deductions are no longer available, since they were front-loaded to the earlier years of the ownership of the property.

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The Tax Break Commercial Real Estate Investors Might Need After COVID-19

Withum

The COVID-19 pandemic has had a dramatic impact on commercial real estate values, and in some cases resulted in property no longer being able to support the debt with which it is encumbered. However, the resulting forgiveness of a portion of the debt does not automatically result in federal taxable income. Business Tax Services.

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Rental Property Income Tax: Why Active or Material Participation Matters

Anders CPA

Owning rental real estate can be a great supplemental source of income in addition to a normal day job. What is most commonly misunderstood about this type of investment is how an individual can treat the income and or losses for tax purposes. Real Estate Professionals. Material Participation.