Webinar #16: Tax & Business Planning for Real Estate Professionals

It’s that time of year… tax time. Chris and Charles asked Peter McFarland to discuss tax strategies and highlight recent changes in the tax code.

You work hard to build your brand, your clientele, and earn your money. Attorney Peter McFarland will suggest some paths available to real estate professionals that help them keep their hard-earned money while also providing protection against those who might want to sue.

Specific topics include

  • What steps can real estate professionals take to ensure that they don’t pay a single cent more to the IRS than legally necessary?
  • What can be done to minimize self-employment tax?
  • What kinds of business structures might a real estate professional want to operate?
  • Interactive Q&A – Please bring your questions!

Webinar Recording

Special Guest: Mr. McFarland has called Long Law Group, LLC his professional home since early 2013 after working at the Low Income Taxpayer Clinic at the University of Denver. He earned his Juris Doctor (J.D.) from the University of Denver and returned to his alma mater for one additional year after passing the Colorado Bar Exam to earn his Master in Laws in Taxation (LL.M.). Since joining Long Law Group, LLC, Peter is proud to provide counsel to his clients on matters ranging from business entity and asset protection planning, traditional estate planning, real estate law, to tax controversy litigation and resolution. Peter conducts regular free webinars focused on a range of legal issues related to his practice areas and can often be found speaking in front of real estate investor groups and other attorneys.

Contact Peter at http://longlg.com/

Questions asked from the audience

  • Do you have a list of items that realtors can deduct?
  • When you say, spend more time on real estate than anything else, does that refer to work hours?
  • Are the items you are going over true for the current tax code or the New tax code or both?
  • I do not have my real estate license but am a contractor for a real estate company doing all the transactions for the office as a 1099 contractor would I qualify as a “Real Estate Professional”?
  • Just to be clear, as a real estate agent, how should we be logging and tracking our hours? I’m a full time agent, and I use a day planner.
  • I’d like to know what we can write off as business expenses that perhaps we are not thinking of. Also, I heard that client entertainment is no longer allowed as a business expense.
  • I’d like to know what we can write off as business expenses that perhaps we are not thinking of. Also, I heard that client entertainment is no longer allowed as a business expense.
  • Isn’t the standard deduction going to gradually change over time? I.E. decrease?
  • So does this effect purchasing a home?
  • If you have lived in your home since 2002 and now sell it and buy another home in another state how will that effect someone?
  • So is there no mortgage interest on a home over $750k
  • If i travel to another city and view property and meet with another Real Estate agent… is any part of the trip deductible… air, hotel etc? explain rules
  • Does the new mortgage interest apply toward the loan amount or the purchase price?
  • What is the 50% limitation on meals?
  • But is it true $10k cap on property tax deduction applies only to own home, not rental property. Rental property expenses deduction goes to Sch E. which has no cap. Is that true?
  • So if I bought a home for $850,000 does that mean we cannot claim taxes on the $100,000 that is over the $750,000 amount?
  • If someone has an existing HELOC and it is renewed or extended under the new tax law, is it governed by the original tax code or the tax code in effect when HELOC was renewed/extended?
  • Is the mortgage interest cap per property or whole portfolio?
  • Does this mean if all of my investment properties are held personally as opposed to in an LLC or S Corp I cannot take advantage of this deduction?
  • Manual Day timers versus electronic/digital kind. Which is best, in light of your comment about IRS attempt to send to have date tested the ink in hand written. Can they do that with digital too? Best system?
  • Just a clarification on the 750 hour rule. If i spend 325 hours flipping houses and 325 doing retail brokerage, It would be hard to qualify as a real estate professional because it’s hard tocombine those two seperate activities?
  • Do you advocate the ira deduction and if so, what type of ira benefits real estate pro’s the best?

 

 

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Authors
Chris Lopez
Chris Lopez is a Denver area real estate entrepreneur and investor, as well as the host of Bigger Pockets’ House Hackerz and the Denver Real Estate Investing Podcast.
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