11 Powerful Tax Strategies for Real Estate Investors
Article by Al Aiello, CPA, MS Taxation, RE Investor Real estate is one of the safest and quickest ways to build wealth. It also yields the best tax-saving opportunities to accelerate your wealth building even further. Unfortunately most real estate investors (and CPA’s) are not aware of these golden opportunities. And remember what Supreme Court Justice, Learned Hand said… "Any...
Read MoreCan An LLC Create And Support Tax Deductions?
Article by Al Aiello, CPA, MS Taxation, RE Investor Yes! But first, if you have not done so, set up a limited liability company (LLC). Then elect the LLC to be taxed as a partnership (with at least two members) so you have an LLC-Partnership which is both a legal and tax entity (with a low IRS audit profile) and the best entity for real estate. If you operate as one person, another member (to...
Read MoreEliminate IRS Fear By Knowing Your Rights And “Hidden” IRS Weaknesses
Article by Al Aiello, CPA, MA Taxation FEAR-OF-THE-IRS is one of the big reasons why entrepreneurs unnecessarily fork out way too much in taxes. Well, eradicate the fear because you have rights against the IRS. IRS employees can lose their jobs because of ten possible offenses, including a violation of constitutional or civil rights of taxpayers. You can sue the IRS for up to $100,000 of damages...
Read MoreThe Wrong CPA Will Cost You Thousands
Article by Al Aiello, CPA, MA Taxation As a real estate investor, not only do you want a tax advisor but a Real Estate Tax Specialist. The problem is to find one. Many of my students tell me when they move to a new town or city, it’s easy to find a good doctor, dentist, real estate attorney, mortgage broker and real estate agent. But what they can’t seem to find is a Real Estate Tax...
Read MoreCan You Do A 1031 Exchange On A Quick Flip?
Article by Al Aiello, CPA, MA Taxation The answer is yes, provided you know the law in depth and plan accordingly. But first some background. A 1031 exchange is a great way to create wealth by saving substantial taxes on the sale of investment property by reinvesting the untaxed sales proceeds in a replacement (investment) property within the IRS requirements of Section 1031 including the...
Read MoreWill Wholesaling Make You a Dealer?
Article by Al Aiello, CPA, MA Taxation Wholesaling is quickly selling a property "as is" with little or no fix-up. Many times the entrepreneur never goes to settlement and will just assign (or "flip") the agreement of sale to their buyer for a quick profit. Wholesaling can be a lucrative cash-profit business. But will it make you a "dealer"? That all depends, but...
Read MoreFile Amended Returns For Hidden Savings
Article by Al Aiello, CPA, MA Taxation In my former days of being in tax practice I literarily did hundreds of amended returns for refunds of past paid taxes because of missed deductions or strategies. Here were the results: First off, NOT one got audited (they usually don’t). Most of the taxpayers were real estate investors because real estate is where most of the tax savings are. Most...
Read MoreThat Awesome Deduction That You Do Not Have To Pay Cash For
Article by Al Aiello I am talking about the most powerful deduction for the real estate investor – Depreciation – which is an annual tax write-off of the cost basis of assets held for rental or business-use, such as real estate. Why this "NO-cash-out; yet cash-IN" phenomena? The first part, "NO cash out" is because the determination of depreciation is based on the...
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