There are benefits to being self-employed. Not having to answer to a boss is a big one, as is being able to set your own work hours. However, when it comes to qualifying for a mortgage, being self-employed has drawbacks. The “stated income” loan application was originally intended to help the self-employed qualify for a
Are you going to pay unnecessary taxes on your real estate owned by your IRA?
February 4, 2016 by
Routinely the IRS requires annual valuations to be listed on the annual IRA IRS Form 5498 filing. However, it is when a taxable event occurs that an independent Fair Market Value valuation becomes crucial for the investor.
How 1031 Exchanges Work
December 9, 2015 by
The title 1031 Exchange comes from the 1031 section of the IRS tax code. The idea behind a 1031 exchange is that an investor does not owe taxes when he or she sells an investment property as long as the money remains in a like-kind investment or business. There are several versions of the 1031
Lease Option Purchase a Multifamily Property
October 21, 2015 by
An overlooked investment strategy is seeking out lease option purchase agreements for multifamily properties. This can be a very good way to grow your investment portfolio for a small cash investment. Why a Landlord Wants to Lease Option a Multifamily Property These are small three to four unit properties that are still considered residential properties
Investors’ Favor Real Estate As Preferred Investment
July 24, 2015 by
Investor’s and homeowners again favor real estate as a preferred investment. A recent Bankrate.com survey shows that 27 percent of Americans now favor real estate as their investment of choice. The second investment choice was cash at 23 percent, followed by stocks and bonds at 22 percent. The balance was “other”. It’s the first time
Real Estate Investing Profits and Loses
September 29, 2014 by
When you are running your own real estate investing business, it’s essential that you have well organized and up to date accounting books. It doesn’t matter if you have 1 property or 15 properties. It doesn’t matter if you have rental properties or are flipping houses or both. Each property must have a separate account.
1031 Exchange – Move Up Without Paying Capital Gains
July 16, 2014 by
Every investor should know about the IRS tax code 1031 exchange (1031 is the tax code section if you want to look it up). This part of the tax code allows you to sell one investment property to purchase a higher cost (more profitable) investment without paying capital gains taxes and depreciation recapture taxes. The
The Dreaded 1099c Form for Real Estate Investors
December 6, 2013 by
You may find yourself in a position of having to short sale a property as a real estate investor. If you do, be sure you understand the possible IRS tax penalty. Investor tax consequences can be very different from the tax consequences of a short sale for an owner occupied home. The IRS Comes Calling
Despite Government Shutdown, Postponed Tax Returns Still Due Oct. 15
October 9, 2013 by
Despite the lapse in government funding for many federal programs, taxpayers who requested a six-month postponement of their tax bill will need to file and, if they owe Uncle Sam money, make payment by Oct. 15. About 7 percent of taxpayers request the extension each year, the IRS says. All normal tax deadlines are still
Pros and Cons to Tax Lien Investing
July 5, 2013 by
Tax lie investing has become a popular method of investing in real estate but it should not be taken lightly. Although potential returns are huge, so are the risks.
