Planning for tax season can be stressful. Concerns about filing taxes are especially valid for business and investment professionals who haven’t kept their receipts in an orderly fashion or are unaware of how much they’ve spent. Luckily, there are ways to save more and worry less about tax planning for real estate investors in Palm City.
Increase Your Returns: Tax Planning for Real Estate Investors in Palm City
If you own a property, you’ll want to be sure that you’re writing off mortgage interests, private mortgage insurance, and property taxes. Additionally, real estate investors may want to look into a 1031 Exchange, which is essentially the deferment of capital gains tax by using the cash from selling property to invest in a replacement. There are a few rules, such as the new property must be similar to the old, and this only applies to properties within the United States. The other two rules are that it must be a business or investment property but cannot be personal property, and if the new property is of lesser value than the old, you will still be taxed.
What many investors don’t do is write off their business expenses, both big and small, ordinary and necessary. It also doesn’t matter if you’re part time or full time, so long as you make sure to save your receipts and reports that can give you a bit of a break by the end of tax season. You may want to consider items like phone bills, home offices, gas, travel expenses, and any insurance or employee payments.
Additionally, many investors are starting to invest in rental properties. Why? Well, there is such thing as long-term capital gains, which means that there are more significant tax advantages when a real estate investment property is held for over a year. It’s also smart to understand the surrounding areas, properties, and plans, as your investment may either depreciate or appreciate over the course of the next few years.
At Advanced Tax Advisors, we’re here to make sure that our clients are taken care of on all tax fronts. We have the knowledge and analytics to advise our clients on tax breaks, advantages, and smart savings while still staying true to the law and regulations. If you’re looking for tax planning for real estate investors in Palm City, there’s not a better team to help you make the most out of your investments. Call us today at (954) 888 – 6941 if you have questions about tax planning.