Extend Your Tax Deadline...Automatically!

Ahh...that dreaded time of the year is upon us again. You know what I'm referring to, don't you? Tax time.
And this year I'm sure all of us that persevered in the real estate industry will agree, we could sure use as many tax deductions as possible. The last thing we need is Uncle Sam taking more of our extremely hard to come by earnings of 2008.
Most Realtors are independent contractors. They are, in effect, owners of their own small business. As such, they are entitled to deduct almost all of their job related expenses as deductions against their income.
For example, when you work out of your home, the rules for home office deductions apply. The best way to determine the amount of household expenses that can be used as a deduction is to calculate the total square footage of the home and then calculate the actual square footage of the office area. Be sure to include any space used for storage or for office machines. The percentage of the total square footage used for business purposes give you a percentage to use for household expenses.
As a Realtor, much of your time is spent working out of your car. As long as a certain portion of the automobile expense is called personal use and not part of the deduction, the remainder is a legitimate business deduction. If the automobile is driven home, that is considered commuting and is no different than any other worker who drives to and from work. However, all miles driven for work purposes are deductible. The deduction can be calculated either by keeping a record of the miles actually driven and using the per mile allowance determined by the IRS, or actually records of the expense can be kept.
If you pay your children to help you stuff envelopes or prepare flyers for an open house, you can deduct the cost as a business expense.
You qualify for losses you incur on rental property you own because you are a real estate practitioner and actively participate in the management of the property.
There are probably a lot of tax deductions you might not be aware of, and that is why its crucial to hire a competent accountant to assist in the preparation of your tax returns. In the meantime, grab yourself some extra time and apply for a tax extension. It will give you extra time to prepare and ensure you receive all of the deductions you are entitled to.
Get a 6 month tax extension , automatically...the IRS doesn't even ask why!