Members: 114,089 -
2,372 Online Now Login
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Blog entries tagged with "depreciation":
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers
and brokers listed on this site. These real estate profiles, blogs and
blog entries are provided here as a courtesy to
our visitors to help them make an informed decision when buying or selling a house. ActiveRain
Corp. takes no responsibility for the content in these profiles, that are written by the members
of this community.
© 2007 ActiveRain Corp. All Rights Reserved 
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
If the word "bifurcation" doesn't roll off the tip of your tongue as easily as some others, don't fret. Bifurcation, which my dictionary says means to "separate into two parts or branches" or to "fork," has a lot of linguistic uses in the real estate and other industries.
As a perennial kid, I always love a good roller coaster ride! What a thrill to have your stomach do flip-flops and feel a bit of weightlessnss after passing the crest of that high hill, and then plummet toward the valley below!
How many times do you talk to a "real estate investor" whether you are an investor or you're a real estate agent showing investment properties that just does not understand a cash flow calculation? Do you ever talk to people that forget to add in such important calculations as insurance, property … (1 comments)
My cell phone rang again today. Another potential borrower looking to refinance off a piece of my direct mail. I don't think I get more excited than when I hear "I got a piece of mail from you and I would like to refinance. Can you help me?" The excitement is … (8 comments)
Many people have heard the term/phrase "appreciation rate" associated with Real Property...ie: Real Estate. It can be deceiving it you just read one article or tidbit on what the "current" appreciation rate is because.....since all Real Estate is local, the appreciation rates vary from city to city; also from neighborhood to … (1 comments)
Sale vs. Exchange
If you plan to sell your investment real estate but don't feel that you have enough gain to warrant a 1031 tax deferred exchange then ask yourself the following question. When you bought your current investment property did you exchange into it? Remember that your adjusted cost basis … (0 comments)
Rising unemployment leads to decreasing housing prices
Wwe all know the 3 magic words in real estate are location location and location. Lately "all real estate is local" is the newest slogan.
If you sold an income producing property after May 5, 2003, your gain will be taxed at the following capital gains rates. For income property held more than one year, investors in a 25% or greater marginal tax bracket will be taxed at a 15% long term capital gains rate and a 25% … (0 comments)
I was having a discussion the other day with my business associate and friend, Dan Garcia. He's a real estate investor in Plainfield, and we've invested in Plainfield real estate together for the past 3 years. The other day I said something that started an interesting conversation, and made me think … (0 comments)
Yes, there's been trouble in real estate paradise, and no matter the causes, the dramatic results have been experienced across the country. Before assuming that housing is a risky investment, please understand that owning a home offers countless advantages over stocks and other securities.
How do you know when the real estate market has hit rock bottom? When you see it in the rearview mirror. That's how it works in real estate. How close do you need to be to trigger your buying decision? Right now you the buyer are dealing with eager sellers. Sellers … (1 comments)
It's an interesting topic, filled with endlessly differing opinions, depending on who you talk to. Will the cost of gas go up, down, stabilize, etc.???
I realize that all things are relative and those who have relatively fuel efficient vehicles may very well feel the pinch, especially if they were already … (5 comments)
Just to recap, the mnemonic IDEAL spells out the 5 reasons why real estate is a great investment. Last blog we talked about the first one, now we'll go onward.
It's important to think about depreciation when considering a 1031 exchange.
What is Depreciation?
Depreciation is an annual tax deduction or write-off that the IRS allows you to take for overall wear and tear and loss of utility of a property. Depreciation includes most types of tangible property such as buildings, … (0 comments)
There are many tax saving strategies that attract investors to real estate investments. Paying capital gains on profits at 15% rather than up to 35% on ordinary profits is one such strategy. There are a variety of other ways to save your dollars. In each Landlord Today article, we will focus … (1 comments)
Go Zone Tax benefit and FEMA sick Trailers, I need to discuss this issue daily to keep it on the front burner. Realtors have so much to contribute towards the clean up and recovery efforts in the Katrina Go Zone. Selling homes in this area you can earn a 4% commission on … (0 comments)
What is a tax free or 1031 Exchange?A 1031 exchange, also known as a Starker Exchange, enables you to sell property and invest the proceeds into another without having to pay tax on the gain--you defer it. And you can keep legally doing this over and over again.Reasons why people exchange … (1 comments)
Not all that long ago people were investing in real estate that had no idea what cap rate or cash flow had to do with it. A cap rate of 2 or 3 was fine since all that mattered was being able to leverage into the building for three years and … (0 comments)
How do you see your market perform for the next few years? Do you think your area (please name) will have appreciation? Remain flat? or Depreciate? And Why do you think that?
In my last post on this topic I discussed depreciation as an expense. We defined depreciation as the measure of the loss of value of business asset over its useful life. So, now we want to find out exactly what an asset is anyway.
Taxation of depreciation claimed on real property works as follows: 
The market in Salt Lake is certainly slowing down, but for all our sakes, that is a good thing. Last year's appreciation rates of 20-25% were great for all homeowners and created a bit of a buying-frenzy that had many buyers involved in multiple-offer transactions and many Builders and Sellers seemed to … (3 comments)
In a strange but true "Back to the Future" paradox, the 1985 film of the same name starring Michael J. Fox and Christopher Lloyd occurred prior to the April 1999 IRS legal memorandum allowing taxpayers to segregate various building costs into shorter depreciable lives other than the standard 27.5 years … (0 comments)
Wouldn't you all like to save money on your taxes? If you are in the business of buying, selling, or trading Real Estate, I have the deal of the lifetime for you. It is called GOZONE. If you don't know about GOZONE here are the basics. You can take 50% bonus … (0 comments)
BELOW IS A COPY OF A MARKET UPDATE I RECENTLY SENT TO OUR CLIENTS: 
Mathematics & Real Estate
Obviously, the real estate agent that hung a marketing piece on my door didn't seem to know either.......
If you've been watching the news lately, no doubt you've heard the gloom and doom about the real estate market. Does this mean it is a bad time to buy or sell a home? That all depends on your situation and where you live.
By maximizing depreciation deductions, you can minimize taxable liability and save money on taxes. Since you cannot immediately write-off the purchase cost of investment property, you must deduct the acquisition cost over the life of the property using depreciation. 
JUNE MARKET REPORT: Covering Gwinnett County, Including Lawrenceville, Dacula, Buford, Suwanee, Grayson, Snellville and other areas.June was a very good month for most Realtors, Builders and Sellers alike. As activity picked up in the hot school districts such as Mill Creek, Brookwood and Collins Hill with buyers and sellers trying to … (0 comments)
In January, I wrote a blog entitled "Knowing Exactly When the Market will Change" that received many comments, replies and supportive feedback. In that blog, I stated that as soon as we have 3 consecutive months when more inventory is going off (under contract) than is coming on (new listings) we … (2 comments)
Austin's been hopping, but it's only inevitable that the recent recession in the rest of the country is beginning to affect Central TX. Although there is still a ton of growth and new jobs coming in, there are signs of at least some Austinites needing to find new jobs: 
I heard a very interesting rumor the other day. And I just called the Lake County property appraiser's office to confirm.
Beginning January 1, 1987, all tangible depreciable property place in service is depreciated using a straight-line, or accelerated depreciation method over longer recovery periods.
Buy Real Estate First Then Buy A Nice New Car, Truck or SUV
Out here in Eugene, Oregon our real estate market appreciation has generally stayed in the double digits for the past 10 years. Our 5 year appreciation in Eugene is somewhere around 68%. Nothing to frown upon when you are in the top 20 cities in the nation for appreciation. But, … (7 comments)
If you are expecting to pay a lot in taxes this year, and you are also interested in investing in real estate, this is the time to schedule an appointment with your CPA to talk about the GO Zone. The GO Zone Special Depreciation Allowance provides a special additional deduction of … (0 comments)
Bifurcate depreciation? I first heard of the term when I attended one of Tom Lundstedt's workshops on calculating the returns on investment property. (If you haven't been, you should go. Or just order his CDs online. I don't say this very often but he is worth every penny.) Anyway, it's a … (2 comments)
In an appreciating market, the ‘move up' buyers have garnered a chunk of equity in their first property. They can then apply that equity towards a large down payment on a more expensive property. Let's start with Day 0 where the buyer bought their starter home for $150,000. Over the next 5 … (10 comments)
I am going to provide another example on how to calculate depreciation. Lets say two close buddies Tim and Mike bought a four-plex next to the beach and paid $600,000.00 for it. The land was valued by the county at 40% of the total investment , which leaves 60% for the … (0 comments)
I posted this suggestion on my other blog http://realtorleads.blogspot.com/ but I wanted to share it here as well. For some time, I have been exploring the effect that commissions have on how fast a property sells. In times of growth, it turns out that you can sell a property faster by … (11 comments)
Taxpayers who have placed real property into service after December 31, 1986 can realize $20,000 to $80,000 in tax benefits per $1,000,000 of a building’s tax basis. They can accomplish this by utilizing shorter recovery periods and accelerated depreciation methods available to them through the application of Cost Segregation techniques. For … (1 comments)