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Must-Know Tax Tips For Real Estate Investors in North Texas


Must-Know Tax Tips For Real Estate Investors in North Texas

Here are a few must-know tax tips for real estate investors in Dallas, Fort Worth. Taxation on income is a given, by making the right moves, you can lessen the impact to your bottom line. Using tax laws to your advantage can maximize the returns that you will realize on your investments. 


Prior proper planning prevents xxxx poor performance, most especially when it comes to organizing your real estate investment business. As a real estate investor, you will want to seek out a real estate investment experienced Certified Public Accountant (CPA), through recommendations from other investors in the West DFW REI Group if possible. You will want to select a CPA with experience in this sector of the market that can offer guidance and recommendations which places you in a position of optimizing your tax deductions for your real estate holdings in Dallas Fort Worth. You should plan to work closely with your CPA, to create a plan that is specific to meeting the needs of your circumstances and business model.


Every decision you make with your real estate investing business should consider what you can write-off, especially when your goal is to take full advantage of any tax tips for real estate investors in Dallas, Fort Worth. Depreciation, the amount of value the property losses due to wear and tear over time, can be deducted as well. There is a specific formula used for residential property and the structure, which is valued over a 27.5 year period, as well as for any fixtures and appliances for a 15 year period. An experienced CPA can guide you in great detail, basically, any expense associated with the property can be deducted. This includes any interest you may be paying on a mortgage for the property, the expenses of repairs, or even the property taxes.


A real estate investment experienced CPA can also provide avenues to qualify for loopholes that help you avoid taxation on your investment income. The laws vary between residential and commercial real estate, so having an experienced professional on your side is worth its weight in gold. You’ll want to take the fullest amount of deductions possible while protecting your assets, so pay careful attention to this tax tips for real estate investors in Dallas, Fort Worth to take full advantage of your tax deductions.


It’s wise not to put all your “investment eggs” into one basket, for this reason, another tax tip for real estate investors in Dallas, Fort Worth, is to diversify. You’ll want both long-term and short term gain type investments. Long-term investments are those which bring in residual income while building in equity, made with a holding period of one year or more, such as rental properties. Short-term investments would be those investment properties that you don’t expect to hold for as long as a year, such as properties intended to be fix-n-flips for a quick turnaround. A trusted CPA should be consulted on the direction you focus on with your real estate investments and what types of deductions are allowed to maximize your refund.

1031 Exchange

1031 exchanges, especially when your goal is to take full advantage of any tax tips for real estate investors in Dallas, Fort Worth, allow you to defer taxes on your real estate transactions. Through this vehicle, you can use your equity to purchase another property, either equal or greater in value than the one sold. There are time limitations for qualifying, so It would be wise to approach your CPA to fully understand deferring taxes in this manner.


Given the plethora of apps and software programs that can help you organize your records, technologically speaking, it would be wise to explore all of your options. Your CPA can likely offer guidance in this area as well, as they specialize in knowledge of tax tips for real estate investors in Dallas, Fort Worth. It can’t be overstated organization is the key to success. While no one enjoys dealing with paperwork, tracking spending, and keeping receipts, practice does make perfect sense. It becomes easier and easier when you start getting into the habit of organizing with your tax write-offs in mind. Whether you are the ultimate bookkeeper or you hire a professional bookkeeper to keep your business records up to date, it’s important that you don’t miss out on these opportunities. Details matter.  It requires consistency and work to keep good records, it can be rather painful to come to the realization that your decision to skip the hassle has caused a negative financial impact. Not only this but by being organized, you will be able to create a report which clearly shows just where you are on the path towards your goals. Likewise, you can use this information to your advantage when making offers on properties, showing you are able to back up your offer easily.  Keeping inaccurate records will not allow you to maximize your tax deductions.

Now that you’ve made your plans and are seeking properties, with the advice of your CPA, it’s time to find those hidden gems, and the West DFW REI Group has great properties available HERE for you right now!  Begin taking advantage of these tax tips for real estate investors in your REI business in North Texas. Learn more about how we can help you by sending our team a message or by giving us a call today @ (817) 599-8058.

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