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 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 MoreTax Options For Selling Investment Real Estate
Article by Ted Lanzaro, CPA Three Tax Options For Selling The current economic environment is certainly not the best time to sell a piece of investment real estate, but personal circumstances might dictate that you must sell right now. What are your options as it relates to paying the capital gains tax you will incur on the sale? Get Tax Advice Before You Sell! Too often, I will get a call from...
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...
Read MoreSaving Taxes Makes You Wealthy – Yes or No?
Article by Al Aiello In my tax presentations one of the first things I cover is why and how saving taxes can make you richer, faster. Well, here it is. If you take $1.00 and double it tax-free for 20 days it’s worth $1,048,576 (over a million dollars). Take that that same $1.00, taxed every year at 30%, it will be worth only about $40,640 — A LOSS of a MILLION DOLLARS. Why is this...
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