IRS Section 121: The Home Sale Exclusion Section 121 of the Internal Revenue Code allows homeowners to exclude a significant portion of the capital gain from the sale of their primary residence from their taxable income. This is one of the most powerful tax benefits available to individuals. Core Rule for Single Filers & Married Couples […]
Yes, you can deduct private mortgage insurance (PMI) premiums for a rental property. The information in the provided prompt, which states that you cannot claim a deduction for private mortgage insurance, is incorrect and refers to an outdated IRS FAQ that mistakenly applied the personal residence deduction expiration rules to rental properties. PMI for a rental property […]
Tax Court Rulings on Real Estate Professional Status, Passive Activity Losses, Deductions, and Hobby Losses Table of Contents Real Estate Professional Status & Passive Activity Losses Deduction Substantiation: “Ordinary and Necessary” Expenses Hobby Losses: Activity Not-for-Profit Depreciation and Basis Issues Conclusion & Actionable Insights 1. Real Estate Professional Status & Passive Activity Losses IRS.gov Reference: Passive Activity […]
1031 Exchange Training Report: Mastering IRC §1031 Exchanges Source: www.REISkills.com Date: October 26, 2023 Subject: Comprehensive Summary of IRC §1031 Exchange Principles, Mechanics, and Procedures 1.0 Executive Summary This report distills the key concepts from the training publication “Mastering IRC §1031 Exchanges.” Internal Revenue Code §1031 is a powerful tax-deferral tool that allows investors to exchange qualifying real […]
Homeowner Tax Credits & Deductions (2025 Outlook) Source: www.reiskills.com | Report Focus: 2024-2025 Tax Years & Key 2025 Changes 1. Executive Summary The homeowner tax landscape for the 2024 tax year (filed in 2025) remains stable under the Tax Cuts and Jobs Act (TCJA). However, 2025 is a critical planning year, as major provisions are set to expire after […]
Understanding §1031 Exchange Basics and IRS Guidance Here is a discussion of the basics of §1031 planning, incorporating relevant URL links from the IRS and other tax authorities to support and expand upon the provided text. Discussion of §1031 Exchange Basics The provided text offers a comprehensive, albeit technical, overview of Internal Revenue Code (IRC) […]
🔗 Primary Resources for Finding a Qualified Intermediary (QI) Organization Why It’s a Good Resource Direct Link to Directory/Search Federation of Exchange Accommodators (FEA) This is the leading national trade organization for QIs. Members must adhere to a strict Code of Ethics and meet specific standards. This is your best starting point. FEA “Find […]
The Tax Aspects of Financing : how interest payments, debt structure, and property sales are treated for income tax purposes, particularly concerning homeowners and sellers who provide financing. I. Homeowner Deductions (Mortgage Interest and Points) The federal government employs tax incentives to encourage homeownership, primarily through the deduction of mortgage interest. 1. Mortgage Interest Deduction (MID): Interest accrued […]
All-Inclusive Trust Deeds (AITDs) An All-Inclusive Trust Deed (AITD), also known as a wraparound mortgage or overriding mortgage, is a flexible debt instrument and security device used in real estate transactions, particularly when traditional financing is scarce or credit markets are tight. The AITD is a form of seller carryback financing where the seller acts […]
Trust Deeds – California deeds, alternative financing, and related processes in real estate finance. This report Primarily focus on three major areas: the essential nature and legal framework of trust deeds; the mechanics, advantages, and risks associated with All-Inclusive Trust Deeds (AITDs) and loan takeovers; and the specific provisions governing processes like impound accounts, assignment […]
Comprehensive Report: Asset Protection Strategies for Real Estate Investors Sources: www.REISkills.com, American Bar Association (ABA) Resources Subject: A Guide to Legal Entities, Estate Planning (FLPs), and Advanced Creditor Shielding Strategies 1.0 Executive Summary This report consolidates key asset protection strategies for real estate investors and business owners. Effective planning involves a multi-layered approach: using the correct legal […]
Executive Summary This document synthesizes key principles for forming, maintaining, and protecting a small business corporation, The central argument is that a corporation, while offering significant liability protection and tax advantages, requires diligent adherence to corporate formalities to be effective. Merely filing incorporation documents is insufficient; ongoing maintenance is critical to creating a “bulletproof” entity […]
Why is a multi member llc better than a single member llc? That is an excellent and insightful question, as the difference between a multi-member LLC (MMLLC) and a single-member LLC (SMLLC) often comes down to crucial distinctions in both asset protection and tax flexibility. Drawing on the provided sources, here is a comprehensive breakdown […]
Introduction: Why an LLC is Your Business’s Best Friend Welcome to your straightforward guide to creating and managing a Limited Liability Company (LLC). This document is designed to give first-time business owners a clear path to follow. An LLC is a hybrid business structure that blends the advantages of a corporation with the simplicity of […]