Real Estate Tax Secrets of the Rich Big-Time Tax Advantages of Buying, Selling, and Owning Real Estate

by Botkin, Sandy

• ISBN13: 9780071472357
• ISBN10: 0071472355
• eBook ISBN(s): 9780071661546
• Edition: 1st
• Format: Paperback
• Copyright: 2006-11-03
• Publisher: McGraw-Hill Education

Summary

IRS insider Sandy Botkin reveals the tax strategies you can use to increase your ROIs by as much as 20 percent-whether you're a home owner or a real estate investor. This accessible guide demystifies real estate taxes and shows how to achieve maximum benefit when buying, owning, selling, managing, repairing, and investing in properties. Features numerous forms, charts, sample documents, and other valuable tax-saving tools Gives you the basics on real estate taxes and shows how to take full advantage of tax loopholes

Author Biography

Sandy Botkin, CPA, Esq. former attorney and trainer for the IRS, is the president of the Tax Reduction Institute. Through seminars he has taught thousands how to save millions on their taxes.

Table of Contents

Dedications and Acknowledgments	vii
Introduction	ix
Part 1 Overview of Real Estate	1	(16)
Why You Should Own Your Home	3	(8)
Buy a Home or Die in Poverty	11	(6)
Part 2 Tax Goodies from Owning a Home	17	(42)
Tax Basis--The Starting Place for All Deductions	19	(6)
IRS Record-Keeping Requirements to Bulletproof Your Basis	25	(6)
Why Making Improvements to Your Home Is Much More Valuable than Making Repairs	31	(6)
Maximizing the New Mortgage Interest Rules	37	(8)
The Point of Points	45	(6)
Maximizing Your Deductions when Building a Home	51	(4)
Maximizing the Effect of Real Estate Taxes	55	(4)
Part 3 Maximizing Tax Benefits when You Dispose of Your Home	59	(24)
Excluding Gain when You Sell Your Home--An Overview of the New Universal Exclusion	61	(6)
Exceptions to the Two-Year Rule	67	(4)
Divorce and Death Implications	71	(6)
Using an S Corporation to Avoid the Two-Year Rule	77	(6)
Part 4 Introduction to Tax Planning for Buying and Looking for Rental Property	83	(24)
Introduction to Investment Property	85	(4)
Understanding Depreciation	89	(6)
How to Evaluate Rates of Return for Residential Investment Property	95	(6)
How to Deduct the Cost of Looking for Property	101	(6)
Part 5 Tax Goodies Incurred while Owning Rental Property	107	(44)
Minimizing Passive Loss Problems	109	(12)
Maximizing Your Depreciation Deductions	121	(6)
Making Land Deductible	127	(8)
Splitting Income by Hiring Family Members	135	(6)
Why Repairs on Investment Property Are Important	141	(10)
Part 6 Minimizing Taxes when Disposing of Real Estate	151	(34)
How to Calculate Gain or Loss	153	(2)
When to Use Seller Financing	155	(16)
How to Avoid All Gain on the Sale of Investment Property Using Like-Kind Exchanges	171	(10)
Sales to Relatives	181	(4)
Part 7 Miscellaneous Real Estate Tax Considerations	185	(24)
Understanding Vacation Home and Second Home Rules	187	(8)
Tax Benefits of Owning Motels, Hotels, and Bed-and-Breakfasts	195	(6)
Frequently Asked Questions	201	(8)
Appendix 1 Recommended Tax Resources	209	(4)
Appendix 2 Leveraging Today's Technology	213	(6)
Appendix 3 Forms	219	(3)
Index	222