There are several ways to handle a parent’s home depending on their particular health or financial situation. At a bare minimum, your parents should have a Revocable Living Trust to ensure the orderly and effectively transfer of the home to the family and avoid probate in states where the expense is significant.
If you are considering ‘checking the box’ on your tax return that you qualify as a Real Estate Professional, make sure to ‘run the numbers’ and see what the actual tax impact may be on your tax return. As a real estate professional, you are able to deduct 100% of your rental depreciation against ANY other type of income on the front page of your 1040.
Rental property can be an excellent investment tool and it often is. However,
Let me assure you, it’s not IF a partner, vendor or customer is going to drag you into a law suit…it’s WHEN. I see so many investors and small business owners lose their business and sometimes everything, including their savings, to a deal gone bad and poor documentation.
I meet one on one with at least 1,000 clients a year to discuss their business
There is a very powerful estate planning tool that may enable you to reduce your liability for income and estate taxes, protect your assets AND diversify your assets in a tax-advantaged manner.
As we all know, an LLC is critical for asset protection when owning a rental, but if you are doing business in Tennessee it’s critical you understand some additional rules for filing your entity.
I recommend to ALL of our clients to purchase at least one rental property a year for tax planning and wealth building benefits.
Anyone who owns a home will inevitably need to deal with contractors and repairmen, but many do not know how to deal with contractors and, therefore, allow themselves to be taken advantage of due to lack of knowledge and experience.
When considering the renovation of an older property, it’s important to be aware of two important tax credits that could add some serious profit to your bottom line.