Tax Corner: Military Capital Gains Exclusion, Sale to Related Parties

Today’s first tax question comes from SFC P, an active-duty National Guardsman who came up to me on a .50-caliber qualification range today and asked: “I know there is a way to exempt my home from capital gains taxes if I’ve been living in it for two out of the last five years and if…

Installment Sales, Self-Directed Retirement Accounts and LLCs

The first question this week comes from Ali, who writes: “We bought a piece of land in 2006 for $75,000. We sold it this year for $50,000. However, we did an owner-financing: 30-year fixed with a balloon in 5 years. A payment of $214 a month with a $4000 check in the beginning. So how…

Back to Basics: What Property Expenses are Deductible?

This week, I wanted to take a closer look at real estate tax questions that begin with the phrase, “Can I deduct,” and then mention the cost of fixing or upgrading something in the house. Sometimes the writer mentions that it’s a personal residence, and other times the writer doesn’t specify whether the property is…

Can I Deduct Losses From Money-Losing Rentals Against Other Income?

Topics addressed in this column: Can I deduct rental losses? Passive activity rules. Ownership and use test. Part-year rental property rules. Welcome back to our Tax Corner column – where we take your tough, real estate-related tax conundrums and bring them to the attention of some of the top tax professionals in the country. Today’s…

When to Take Depreciation

Topics Raised in This Column: When to take depreciation on investment properties. Taxation of unrelated debt-financed income. Real Estate IRAs. This week’s Tax Corner question comes to us from Rick Chase, who posted the question in a column on the taxation of real estate flipping: “I am new to real estate investing and recently purchased…

Deducting Rental Losses

Today’s Tax Corner question comes to us from one of our reader comments: I am married and file jointly with my wife in N.J. I purchased a two-family house and spent about $40,000 renovating the rental apartment – I live in the other part of the home. I have a full-time job but spent most…

Passive Activity Rules, and Financing Property in an LLC

Rick is a beginning real estate investor in New York City. He owns a rental property in Tampa and is now in the process of closing a property in Jacksonville, Fla. Both properties are financed with conventional investment loans with 20 percent down. He wrote us with two questions: 1. Can I write off any…

Introduction to Tax Corner

Welcome to a new feature on RealEstate.com, where you get to control more of the content. A recent article on tax and investment property raised some issues – and you folks started writing in the comment thread with your questions. I got answers to some, but there were more questions than I could keep up…