tax problems for realtors: Incorporate is that the Right Decision for Me?
- 02/27/13 11:23 PM
This is a question that I am asked often. It is also a question that has to take into account your personal situation. What is your marital status, how many children do you have, when is everyone’s birthday. More questions like do you have a lot of medical bills, co-pays, prescriptions, do you have employees? What are your retirement plans, how are you going to pay for your children’s college costs? May sound like some of the interviews you do with a prospective buyer or seller. First time home buyer's, move-ups, downsizing. What are your wants and needs. Three bedrooms, two … (0 comments)
tax problems for realtors: Icebergs and REALTORS so much alike!
- 02/26/13 11:53 PM
Do any of you know how much of an iceberg shows itself above the water? Well the answer is 10%. The rest of the iceberg is below the surface where it can’t be seen. A lot of people think you got an easy job. Stick a For Sale sign in the yard and 2 or 3 weeks later you collect a big commission check.
Well, first of all it’s not that you get the total commission check. And this is where the iceberg theory comes into play. All the general public sees is the 10% of your job or the sign in … (1 comments)
tax problems for realtors: Cruising In Style
- 02/26/13 09:55 PM
Cruising the high seas has become an increasingly popular way to travel, with over 14 million Americans cruising in 2010. Cruise fans love the convenience of unpacking just once and letting a floating resort take them from one glamorous destination to another. Cruise critics cringe at the stereotypical cheesy Vegas-style shows, 'round-the-clock buffets, and abbreviated shore excursions to the same chain retailers they can visit at their local mall. But all of us were thoroughly disgusted by this month's sordid tale of the Carnival Triumph, the mega-ship that lost power in the middle of the Gulf of Mexico. Four-hour waits for … (0 comments)
tax problems for realtors: Do I Have to Pay Taxes on the Sale of my Home
- 02/25/13 11:54 PM
By now, most real estate agents know that you must have owned and used your home as your principal residence for at least two of the five years preceding the sale. And that if you’re single you can exclude up to $250,000 of profit or if you are married up to $500,000 of profit. But what qualifies as a principal residence? The definition of “principal residence” includes more than the single family structure. House trailers, mobile homes, houseboats, condos, cooperative apartments, duplexes, and even boats that have cooking, sleeping, and bathroom facilities can all qualify if they are used as a … (0 comments)
tax problems for realtors: Are Points Paid by my Clients Deductable
- 02/25/13 11:23 PM
Points paid on home mortgages may be deducted in the tax year you pay them. You don’t have to write a separate check for the points as long as you provide funds for down payments, escrow deposits, etc., at least equal to the points paid. In addition, the buyer can deduct points paid by the seller. Points paid on a refinanced mortgage do not qualify for current deduction; you deduct them pro rata over the life of the loan. There is an exception if part of the refinanced funds are spent on home improvements. You may be able to deduct the … (2 comments)
tax problems for realtors: Retirement Plan, it's not to Late for 2012!
- 02/24/13 11:00 PM
There is a whole alphabet soup of retirement plans to consider, from IRAs, SEPs, SIMPLEs, to 401(k)s, defined benefit plans, and even tax-free “Roth” options. When was the last time you looked at your plan? Are you sure it’s still the best plan for you and your employees?
Now that 2012 is over, about the only available deductions after the end of the year are retirement contributions. Each plan has its own unique advantages and disadvantages. For example, an SEP plan’s contribution is due by the due date of the return plus extensions. So, here’s how that feature of an SEP can … (0 comments)
Code section 280A(g) let’s you rent you’re home tax-free for up to 14 days. Consider renting your entire home to your business (if you operate as separate business entity such as a S Corp) for meetings, entertainment, or similar purposes to deduct money from your business without owing tax on it personally. This deduction requires a lot of detail documentation but can be worth your time.
Deductions like these are why you need a Tax Coach who specializes … (3 comments)
tax problems for realtors: Beware of IRS Scammers!
- 02/21/13 11:07 PM
This tax season be aware that there are computer scammers ready to steal your information. They can send you an official looking email and even have the IRS logo. They will next try to “phish” for info to learn your social security number, bank account information and credit card numbers. Another area to watch is called a refund scam. Here they tell you in an email that you are eligible to receive a federal tax refund and direct you to a website and get your banking and personal info. Another is an email from the “Antifraud Commission”. Run away as fast … (1 comments)
tax problems for realtors: Bassmaster Classic in Tulsa This Weekend
- 02/21/13 10:31 PM
The Super Bowl of Bass Fishing will be taking place in Tulsa this weekend on Grand Lake. Just in time for the event was a snowfall of 5 inches of snow yesterday. The temperature today will have a low of 20 degrees and tomorrow will be about 18 degrees. But, just like Oklahoma weather, we will have a high Sunday for the presentation in the 60’s. Can you imagine speeding across a lake at 70 miles per hour in freezing conditions – burr! Real estate agents are doing a bang up business on short term rentals on Grand Lake and property … (2 comments)
tax problems for realtors: Hire your Spouse and Enjoy Big Tax Savings
- 02/20/13 11:43 PM
If your business is taxed as a sole proprietorship, you don’t have to pay Social Security or Medicare on your spouse’s wages. Now why would I want to hire my spouse? By making your better half an employee you open up a plethora of employee fringe benefit plans. This lets you establish employee benefit plans such as a medical expense reimbursement plan, an educational assistance plan and retirement plan. Of course there are the usual documentation rules or as I like to call them the “Terms and Conditions”. Bill Zumwalt Helping REALTORS with Tax Solutions and Solving Tax Problems for REALTORS REALTOR Tax … (0 comments)
tax problems for realtors: How Long to Keep Tax Records?
- 02/20/13 11:01 PM
The IRS can audit the last 3 tax years that have been filed. So once you file your 2012 taxes you will need to also keep 2010 & 2011. If you under report your income (by more than 25%) you need to keep your records 6 years. Julie Morgenstern, author of Organizing From the Inside Out, suggests archiving tax documents in a rotating six year file: “Outfit a banker’s box with six box-bottom file folders labeled Years 1 through 6 (rather than by the year itself to avoid having to label annually). Keep last year’s tax records and related receipts in … (6 comments)
tax problems for realtors: What to do on a Half Day Off?
- 02/19/13 11:31 PM
I know this has been a big topic for all of you but what do CPA’s do during tax season for fun? Debbie and I are movie lovers. This past Saturday afternoon (after a morning at the office) we went to see “A Good Day to Die Hard” at the local IMAX theater and we brought along our son, Chris, who is in the Air Force and stationed at Tinker AFB in Oklahoma City. This is a typical Die Hard movie with lots of bad guys getting shot and Bruce Willis quipping his way through every impossible predicament. I wish that … (3 comments)
tax problems for realtors: Biggest, Crybabies EVER!
- 02/19/13 10:33 PM
Here in America, we're used to people running to court every time life throws a curveball. Spill hot coffee in your lap? Sue McDonald's! Get drunk, drive your car into a bay, and drown because you can't open your seat belt underwater? Mom and Dad can still sue Honda and win $65 million! Electrocute yourself trying to rob a bar? There's a lawyer for that! Earlier this month, though, we saw some satisfying comeuppance in one of those cases that makes us roll our eyes in amazement. First, a little history. UBS is Switzerland's biggest bank -- and, like most Swiss … (2 comments)
tax problems for realtors: Just How Aggressive can You Get Before Risking Penalties?
- 02/18/13 11:22 PM
Just how aggressive can you get before risking penalties? You can avoid accuracy-related penalties if you have a “reasonable” basis for taking a position (generally, more than one chance in three of being accepted by the IRS ). You can file Form 8275 or 8275-R to disclose positions you believe to be contrary to law or regulations. But some tax pros recommend not filing them. Why volunteer information that can attract unwanted attention. And if you think you are alone the tax professional can face IRS penalties as well. Bill Zumwalt Helping REALTORS with Tax Solutions and Solving Tax Problems for REALTORS REALTOR … (0 comments)
tax problems for realtors: It's Your Money, Keep More of it NOW!
- 02/18/13 10:08 PM
I guess you could call this a Guest Blog or a third person blog. My name is Dick Betts and I am a National Speaker for Real Estate. Many of you have attended my sessions during the past 13 years as I have crisscrossed the country and spoke at NAR events. One of my topic I speak about today is the power of blogs which if your reading this you already agree with the concept. My friend Bill Zumwalt contacted me a few months ago to help him establish a national presence to help REALTORS with taxes. Bill attended a few … (0 comments)
tax problems for realtors: Volunteer for Tax Deductions
- 02/17/13 11:16 PM
By now most of you know that Debbie and I volunteer for Tulsa Boxer Rescue by putting on an informal ball each year. Last year’s party “Boots, Barbeque and Boxers” raised over $17,000. But did you know what volunteering expenses are deductible as itemized deductions? · Travel, meals, and entertainment related to volunteer and charitable activities ( actual expenses or 14 cents per mile, plus parking and tolls). Travel to move Boxers to various adoption events or shuttle to the vet. · Telephone calls and office supplies · Dog food, vet bills, dog collars etc donated to dog shelters · Convention expenses · Part of organization dues ( the organization … (0 comments)
tax problems for realtors: Deducting Charitable Gifts as a Business Expense
- 02/17/13 10:16 PM
You can deduct charitable gifts as a business expense if you can show they bear a direct relationship to your business and you make them with a reasonable expectation of financial return commensurate with the amount paid (Rev. Rul. 77-124). You can offer charitable gift coupons, pay part of your income or sales to charity, or link gifts to the business you generate through the charity. An example of how to make a charitable gift into a business deduction. “Personally, I guarantee you’ll leave with new information, or I’ll donate $50 in your name to the Susan G. Komen Breast Cancer … (0 comments)
tax problems for realtors: Want to Save on Taxes? Hire Your Kids!
- 02/14/13 11:39 PM
Are you tired of being the Bank of Mom & Dad? If you are a sole proprietor I’ve got some great news for you! In 2013 you can pay your child up to $6,100 tax free. And if under the age of 18 you don’t have to mess with any social security as well. By doing this you can drastically reduce your taxes! Let’s say you are in the 25% bracket for federal taxes and your state rate is 5%. Oh, don’t forget self-employment taxes of $15.3%.That’s a grand total of 45.3% WOW! So by hiring your child and paying $6,100 … (2 comments)
tax problems for realtors: Are You Satisfied with the Taxes you Pay?
- 02/14/13 11:19 PM
Are you satisfied with the taxes you pay? Are you confident you’re taking advantage of every available break? Is your tax advisor giving you proactive advice to save on taxes? I’ve got bad news and I’ve got good news. The bad news is you’re right. You do pay too much tax. You’re probably not taking advantage of every break you can. And most advisors do a poor job of actually saving their clients money. The good news is you don’t have to feel that way. What you need is a better plan. I don’t care how good you and your tax … (0 comments)
tax problems for realtors: Choosing The Right Entity for Your Business!
- 02/13/13 11:34 PM
Have you organized your business right? Choosing between a proprietorship, partnership, LLC, S-corporation and a C-corporation is one of the most important decisions you make. Most real estate agents choose one when they open their door, then forget it until the end of time. That can be an expensive mistake! Business and personal considerations change over time. You may find that a new structure, or an additional entity, help accomplish your unique goals with far less tax dragging you down. Take the time this year to review your situation. Compare the advantages and disadvantages of each entity and see which one … (3 comments)
This is a question that I am asked often. It is also a question that has to take into account your personal situation. What is your marital status, how many children do you have, when is everyone’s birthday. More questions like do you have a lot of medical bills, co-pays, prescriptions, do you have employees? What are your retirement plans, how are you going to pay for your children’s college costs?
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