The process of incorporating a company is commonly referred to as company formation. The benefits of company formation are numerous. Tax savings are one of the most obvious. But there are also other benefits. Let’s explore a few of them. Tax Savings When forming a business, one of the most common questions you should…
A trust can be a useful estate-planning tool for lots of people — not just billionaires. Is a trust right for you? There are two main reasons why you would consider creating one. You have a net worth of at least $100,000, a substantial amount of which is in real estate. You have very specific…
If you’re considering creating a trust, you might want to know more about the pros and cons. A trust can transfer your home title and other property to your beneficiaries without going through probate, which can be expensive, time consuming, and public. Pros While a living trust may sound like a fancy tool for…
A trust serves a number of purposes in family planning. For example, it can Ensure that assets are professionally managed across generations; Protect beneficiaries from spendthrift tendencies, and minimize income taxes; Serve as an effective vehicle for charitable giving, as it prevents assets from becoming marital assets in the event of divorce; Preserve privacy and…
You may have heard the misconception that you need to be wealthy to have a trust. That is not true. You don’t have to be a millionaire to set one up. A trust can be a useful estate planning tool for many people, including mixed families, those who inherit money, and people you care about….
Recently, the IRS and Treasury released two revenue procedures on accounting method changes for small business taxpayers. Rev. Procs. 2022-9 and 2022-14 enable small business taxpayers, not a tax shelter, to obtain automatic consent to change to simplified methods of accounting, i.e., cash method of accounting. These changes: Modify existing automatic method changes; Add several new automatic changes,…
Every transaction in the real estate business is a big deal. That is why real estate brokers need to understand the fundamentals of accounting. Here are three accounting tips you should know as you open or continue to run your brokerage. Accounting System Accurate Financial Records Accounting Method Accounting System Setting up your…
If you’ve decided to open your own real estate agency, here are five things you need to know. 1. Weigh the Pros and Cons You are a go getter who’s willing to take on massive risk for potentially huge rewards, right? (If not, stop reading now.) It goes without saying, you’ll need to work…
You own an agency or a brokerage and you’re looking for some tax breaks. Here are several tax breaks to consider as you plan for your 2022 deductions. Remember, to qualify as deductible, real estate business expenses must be ordinary and necessary, directly related to your business, and a reasonable amount. IRS Publications 463…
You may have heard that diversifying your investment portfolio is good and that mixing in real estate investments can create valuable, recurring cash flow. But did you know those investments can be tricky come tax time? What can you write off? In addition to property taxes, mortgage interest, property management fees, and costs to…