al estate investors do not understand the benefits of increasing real estate depreciation. They often ask, “doesn’t increasing my depreciation just mean that I will be shifting taxes from now until when I sell the property?” This is a popular misconception and the answer is a resounding “no”. There are two benefits of increasing depreciation: 1.Converting ordinary income into capital gains income 2.Deferring income…
Filed under Tax Refunds by on Jul 31st, 2009.
Although the vast majority of exchanges occurring presently are delayed exchanges, let us briefly explain a few other exchanging alternatives. Simultaneous Exchange As mentioned previously, prior to Congress modifying the Internal Revenue Code as to exchanges and formally approving the concept of delayed exchanging, virtually all exchanges were of the simultaneous type. To qualify as a simultaneous exchange, both the relinquished property and th…
Filed under Tax Refunds by on Nov 15th, 2009.
Property Rental Income for Individuals UK Rents and licence’s are regarded as UK land and property. Land and property income is all income deriving from such property as if it were a trade. Therefore this is calculated as all income being assessed in the tax year on an “accruals” basis. This means that income is taxed on an “arising” basis in the year of assessment, i.e. income that is due in the year, and not nece…
Filed under Tax Refunds by on Nov 15th, 2009.
Most commercial building owners are grossly overpaying federal income taxes because they are not depreciating their property as quickly as they should. A cost segregation study allows property owners to both defer and reduce federal income taxes. When properly performed by an appraiser with expertise in cost segregation, this is a conservative tax planning tool which reduces federal income taxes by properly allocating the cost basis between land…
Filed under Tax Refunds by on Aug 5th, 2009.