Installment Sale in St Petersburg Florida

How to Save Tax with an Installment Sale

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Are you planning to sell real estate before the end of the year? Naturally, you hope to entice a qualified buyer who has plenty of cash on hand. But being open to the idea of an installment sale may help you seal the deal. Fortunately, installment sales also offer tax savings for...
Professional in St Petersburg Florida

Real estate investor vs. professional: Why it matters

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Income and losses from investment real estate or rental property are passive by definition — unless you’re a real estate professional. Why does this matter? Passive income may be subject to the 3.8% net investment income tax (NIIT), and passive losses generally are deductible...
PAL Rules in St Petersburg Florida

Tax Court Interprets Exceptions to the PAL Rules for Rental Properties

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Real estate owners who rent their properties often incur tax losses due to depreciation write-offs and other allowable deductions. However, the ability to deduct those losses might be postponed indefinitely by the passive activity loss (PAL) rules. In general, these rules limit...
Lease in St Petersburg Florida

Should You Lease or Buy?

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A commercial real estate lease, like any other contract, can be negotiated. The idea is to avoid ever using a form document and, instead, come up with a custom lease that provides your business with maximum legal, economic and tax advantages. Before signing a lease, your business...
Real Estate Expenses in St Petersburg Florida

Consider Section 179 Deductions for Real Estate Expenses

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The Section 179 deduction for qualified real property expenses was made permanent under the Protecting Americans from Tax Hikes (PATH) Act of 2015. However, claiming this deduction isn’t a no-brainer. Here are the pros and cons. Deductions for Qualified Real Property Costs...
Real Estate in St Petersburg Florida

Why flip real estate when you can exchange it?

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There’s no shortage of television shows addressing real estate these days. Many of these programs emphasize “flipping” properties when an adequate gain has been reached. But, if you’re ready to move one of your investments, you might prefer to exchange it rather than flip it....
Income Investments in St Petersburg Florida

All income investments aren’t alike when it comes to taxes

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The tax treatment of investment income varies, and not just based on whether the income is in the form of dividends or interest. Qualified dividends are taxed at the favorable long-term capital gains tax rate (generally 15% or 20%) rather than at the applicable ordinary-income...
Real Estate in St Petersburg Florida

You’re a real estate investor, but are you a “professional”?

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Income and losses from investment real estate or rental property are passive by definition — unless you’re a real estate professional. Why is this important? Passive income may be subject to the 3.8% net investment income tax (NIIT), and passive losses are deductible only against...