Category: Tax Benefits

Summary: Have you taken advantage of the tax benefits real estate have to offer? If so, then you’re probably familiar with material participation. Material participation refers to the criteria that the IRS uses to determine whether a business endeavor is active or passive. It’s what makes the income from the business either an active or passive source of income. This is especially important in real estate. If you materially participate in real estate, you can use real estate losses to offset your W2 or 1099 income. People often get stuck on what activities qualify as material participation. In this article, I’m going to go over the major categories of real estate activity that count as material participation with a specific focus on vacation rentals. This article comes with a detailed…

Summary: If you’re a high-income earner, you know that taxes are your single biggest expense line item. As soon as you see the amount, you're paid versus the amount that ends up in your bank account, you feel it.  You feel it at tax time when you see the five or six figure tax bill. Most assume that there aren’t great options for someone who is working full time. However, you’d be wrong! In this article, we’re going show you the secret for maximizing rental property tax deductions while working full-time. (more…)