Real Estate

Home sales: How to determine your “basis”

The housing market in many parts of the country is strong this spring. If you’re buying or selling a home, you should know how to determine your “basis.” How it works. You can claim an itemized deduction on your tax return for real estate taxes and home mortgage interest. Most other homeownership costs can’t be …

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Understanding the passive activity loss rules

Are you wondering if the passive activity loss rules affect business ventures you’re engaged in — or might engage in? If the ventures are passive activities, the passive activity loss rules prevent you from deducting expenses that are generated by them in excess of their income. You can’t deduct the excess expenses (losses) against earned …

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Take advantage of a “stepped-up basis” when you inherit property

If you’re planning your estate, or you’ve recently inherited assets, you may be unsure of the “cost” (or “basis”) for tax purposes. Fair market value rules. Under the fair market value basis rules (also known as the “step-up and step-down” rules), an heir receives a basis in inherited property equal to its date-of-death value. So, …

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Your succession plan may benefit from a separation of business and real estate

Like most businesses, yours probably has a variety of physical assets, such as production equipment, office furnishings and a plethora of technological devices. But the largest physical asset in your portfolio may be your real estate holdings — that is, the building and the land it sits on. Under such circumstances, many business owners choose …

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Be aware of the tax consequences before selling your home

In many parts of the country, summer is peak season for selling a home. If you’re planning to put your home on the market soon, you’re probably thinking about things like how quickly it will sell and how much you’ll get for it. But don’t neglect to consider the tax consequences. Home sale gain exclusion …

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Sec. 179 expensing provides small businesses tax savings on 2017 returns — and more savings in the future

If you purchased qualifying property by December 31, 2017, you may be able to take advantage of Section 179 expensing on your 2017 tax return. You’ll also want to keep this tax break in mind in your property purchase planning, because the Tax Cuts and Jobs Act (TCJA), signed into law this past December, significantly …

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Part 3 of Life, Death, and Taxes – Investing in Real Estate

Guest blogger Jacob Davis ends his Life, Death, and Taxes series with thoughts on Investing in Real Estate. Please contact our office with tax questions related to real estate investing. Thank you, Jacob, for providing this series. This article is not about how to invest in real estate or the ways to go about it–it’s …

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Part 1: Life, Death, and Taxes — Welcome To Being An Adult, First Time Home Buyers

As many of my readers know, my father is a CPA (Certified Public Accountant) who is the founder and owner of the Kelly T. Davis, CPA, PA firm in Overland Park, Kansas. He has 35+ years of dealing with people and their taxes and knows just about everything your little heart could ever desire about …

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