Tax Planning For Real Estate Investors

A successful business or individual needs a well-planned tax plan. The strategy should be comprehensive, flexible and up-to-date. The following are some of the important steps to a successful tax plan. If you are not sure how to go about preparing your tax plan, consult an accountant or a tax professional.


As tax season continues, American individuals are faced with Broken Arrow accountant many questions regarding tax rates and planning. Uncertainty about these rates is making it difficult for people to make smart decisions about how to plan for taxes and make the most of their money. In part due to the weak economy, Congress is debating whether to extend the Bush tax cuts. President Obama has offered some proposals to extend these cuts.


Tax planning helps businesses reduce their tax liabilities and maximize their refunds. There are various strategies that a business can use to reduce their tax liability, such as using American Opportunity Credits to reduce future educational expenses. While starting a new business can be a daunting experience, tax planning can help position the business for future growth.

Real estate investors

As a real estate investor, it is crucial to maximize tax benefits. By following the correct strategies, you can offset the majority of your income tax obligations. Keeping meticulous records is critical in this regard. Your current CPA may not understand all of your investments and properties, so it is vital to hire a tax strategist to oversee your tax affairs.


Syndicators play several different roles in the LIHTC market, including connecting investors with developers and overseeing the acquisition and ongoing management of projects. They are typically compensated through an initial acquisition fee (a percentage of gross equity raised) and an annual asset management fee. Whether an investor uses a syndicator will depend on several factors.

Home office deduction

A home office deduction is a great way to reduce the amount of tax you owe by using your home as a business. This deduction is available to homeowners and renters. However, there are some requirements to qualify. You must have a designated area where you work, including a desk in your bedroom or a kitchen table. The space should not be used for other activities, such as phone calls or family visits.

Bonus depreciation for machines that have appreciated in value

Bonus depreciation is a tax break that allows businesses to deduct the full cost of their machines and equipment the year they purchase them. Bonus depreciation can be as much as 100% of the purchase price in some cases, but it’s not available on all assets. Businesses should determine whether a particular piece of machinery or equipment qualifies for bonus depreciation before purchasing it.

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