This year’s market has definitely been interesting to say the least. Homes have been bought, sold, flipped, and rented. Wholesalers and retailers and just about everything else under the sun has had to do with real estate has been at the forefront of the news.
For many people who are not in this market, it’s been hard to keep up with. It feels like everything has been moving the background. For those people who are in real estate know exactly what I am referring to. Deals are being made and property is being moved.
If you are looking to get into the real estate market you really need to know what you’re doing, or work with somebody who does. There are lots of different options when it comes to investing real estate. You can buy a property that is rented out, these are known as long-term hold. You can buy property for cheap, fix it up, and then try to sell it, these are called flips. And many more options even beyond these two examples.
The biggest thing that you need to know, especially if you are in a buy and hold arena, is that if your adjusted gross income is somewhere below $150,000, you may be able to deduct as much as $25,000 of real estate expenses against your normal income-meaning your W-2 income.
$25,000 is not a small chunk either. For many people, this can be the difference in tax brackets, the difference between getting a refund and/or owing, and the difference in getting that summertime vacation is euros user refund for.
If you are interested in knowing where about how this part of the real estate code works, you definitely need to attend one of our seminars. There are lots of different pieces that filtering to this, way too much to put into a blog. But I wanted to make sure that you knew, that if you are interested real estate there people out here to help you. Specialists, just like me, can help you in this arena. We’ll be announcing our seminar dates very soon! Check our events page of our website for more information.
My biggest tip for the real estate people, keep your head in the game. always remember, buy low and sell high. Real estate is all about the deal, if your emotions get involved you’re in deep trouble and you need to stop and think about what you’re doing, logically.
Looking forward to helping you with your next deal,
Your Tax Goddess.