5 Tax Saving Tips For Real Estate Investors

Taxes are one of life’s many certainties, especially for real estate investors who spend millions of hard earned cash yearly on housing tax. However, paying housing or property task shouldn’t be such a painful ordeal if you can put a few of the tax saving tips in this article into practice. Hence, to maximize your task savings on your property investment make sure you have streamlined your investing operation appropriately. Below are five tax saving tips every real estate investor should know:


Hire the services of a good accountant

Having a good and competent CPA is necessary if you must maximize your tax savings as a real estate investor. Unless of course, you enjoy spending your hard earned cash, your best bet to maximizing your property tax saving is by finding a very competent CPA who is conversant with the real estate market and also specializes in real estate tax. Although there are so many unqualified CPA’s that can make a mess on your investments, finding a qualified accountant is non-negotiable if your investment must keep more money. A good CPA can help you make an informed decision as well as recommend other team players that can make your investment a profitable venture.

Get organized

Many real estate investors today pay so much in tax because they have refused to keep accurate records of business dealings. As a real estate investor who wants to maximize tax savings, you must ensure that you keep a strict record of all financial transactions. One thing that has proven very helpful in this regard is finding a filling system that works for you. To this end, you must keep an accurate record of all your real estate investment just as IRS advises.

Hold Short Term and Long Term Investments in Different Entities

Having located a qualified CPA who understand the dynamics of real estate investments, the next step you should take is separating your short term investment from your long term investment. As you would agree, flipping, rehabbing or wholesaling are essentially a short term property investment while owning a rental property is typically a long term property investment. Opting for any of this two property investment options can have an enormous impact on your property tax. Hence you must ensure you have a qualified CPA that will help you figure out which property investment strategy is perfect for you.

Figure out overlooked deductions

Overlooked deductions are one of the reasons most real estate investors are paying heavily for property tax. Nonetheless, a good, reliable and qualified CPA that is familiar with real estate investment can help you locate and cut down your overall tax bill. As such, one question every real estate investor should always ask is why paying more when you don’t have to? A perfect way to cut down overlooked deduction is to:
• Cut off home/office expenses
• Write off mileage cost from investment
• Reduce business entertainment cost
• Cut down on unnecessary travel expenses etc.

Prevent capital gains taxes

One smart way every real estate mogul can save money on taxes is to avoid capital gains taxes. For instance, if you own a property, you can sell that property without having to pay capital gains taxes. This is made possible by section 1031 which states that when you reinvest the proceeds of the sale of your property in another property, then you are exempted from paying capital gain  taxes.

Things to Know about Selling a Real Estate Property


6f1421f222130b5fb2b52fb67b9ed699When it comes to the matter of selling a real estate property, it is best if you have a lawyer on your side so they would help in guaranteeing that you have no further commitment in regards to your old home loan on the off chance that it is being expected by the purchaser, affirming that all installments for which you are capable have been made, masterminding you to sign the exchange records, setting up an announcement for you that is useful in sketching out where all the cash was dispensed and giving you the net results of the deal.


Things to Know about Selling a Real Estate Property

2016-best-worst-cities-to-be-real-estate-agentOnce the house has been sold, expect to pay for the commission you consented to pay to the financier, the legitimate charges to release any current home loan regardless of whether you connect with your own legal counselor or not, the GST on the land commission and on your legitimate charges, any prepayment punishment required by the money related foundation for early payout of a current home loan, your offer of the property charges for the year if the currentyear’s duties have not yet been paid, in addition to any punishments due for late installment of unpaid assessments.

9095238In the event that you are worriedabout something as a consequence of land administrations given by a licensee, the accompanying strides ought to be considered. Talk about the worry with the licensee. In the event that the matter is still not determined, examine the worry with the overseeing specialist responsible for the business. Most concerns are settled by these two means. In the event that the licensee is likewise an individual from a nearby land board, the board might have the capacity to help to casually resolve the worry. In the end, the problem is not solved once your house has been sold. So pay attention to the finer points.

Being Careful in Real Estate Sales


12066866Selling a real estate property is more than about placing it on an online listing and seeking for someone who is interested in it. You should be smart and careful while selling a property because this is a field rife with frauds. The Real Estate Council can examine any objection about the behavior of a land licensee in his or her treatment of your land exchange. The Council is approved to train a licensee discovered liable of expert unfortunate behavior.

Tips for Being Careful in Real Estate Sales

buying_a_house-jpg-size-custom-crop-1086x726It ought to be noted, in any case, that the Council does not have the power to require a licensee to perform under the terms of an agreement, nor does the Council have any purview over purchasers who have not performed under the agreement. The Council can’t grant harms to a complainant from a licensee. Those matters may require legitimate activity. Misrepresentation against attorneys and including legal advisors is on the ascent crosswise over Canada and the United States. Fraudsters have abused the shortcomings in the frameworks and demonstrated why we should all institute protections to confine our presentation.

Couple shakes hands with realator in fron of new home

There are numerous components that offer ascent to extortion. It is a sad fact that there are plenty of lawyers who have been a part of a plan to trick the seller of a home in real estate. There are actually rules that prevent against this. A legal advisor must not participate in any action that the legal counselor knows or should know helps with any deceptive nature, wrongdoing or misrepresentation, including a fake movement, inclination or settlement. A legal counselor has an obligation to be wary of turning into the instrument of a corrupt customer or of people connected with such a customer and, in a few conditions, may have an obligation to make arequest. All in all, make sure you have a lawyer on your side when selling a property to be careful.