Is Your Tax Advisor Experienced in Investment Real Estate??

As tax time approaches you as a investor with rental property have to be more selective about who you have preparing your tax return.

Just as it is important for you to choose a real estate agent as part of your team, who realizes your needs for real estate investment properties are much different than the needs a typical real estate agent is familiar with working with buyers who are looking for a home to live in themselves, you as a real estate investor with rental property must also make sure the tax adviser on your team is also experienced in real estate rental properties.

While it is no secret many people choose real estate as an investment vehicle partially because of the tax treatment, it unfortunately is not uncommon for tax preparers to be unfamiliar with what they are.

Put your tax adviser to the test, ask him/her if they are depreciating your rental home over 20 or 30 years (nether answer is correct), if they give you a deer in the headlights look and then explain how it is not beneficial for you to depreciate your rental home, pick up your paperwork and RUN DON’T WALK to the door!

Not only is it important for your tax adviser to be aware of obvious expenses you may be able to deduct like depreciation, Adverting, Insurance, Mortgage Interest, Taxes, Repairs, Supplies, Maintenance and many more for your rental property, but it is also important for your tax adviser to understand limits on rental losses, at- risk rules , passive activity limits, what defines active participation in rental real estate activity, what is the definition of a real estate professional and many other rules as they relate to real estate rental activities.


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Richard D Chapin PLLC, for real estate investment property in the Phoenix area including:  Gilbert, Mesa, Queen Creek, San Tan Valley, or surrounding Maricopa county!

This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax advisor to obtain further information you deem necessary. I want you to be prepared.

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