Tax and Accounting Strategies for Residential Real Estate Investors
Investors who wish to increase their family΄s net worth, cut taxes, increase financial flexibility and provide for retirement and heirs will benefit from this course. The course covers the major considerations involved in investing in residential real estate including:
The residential real estate investing landscape - real estate investment choices and operating businesses
Your real estate business plan
Evaluating potential acquisitions, including evaluating markets, financial modeling, financial ratios and due diligence
Selecting the right business structure for real estate investments
Tax aspects of real estate, including passive income, tax exchanges, active income, depreciating property, tax accounting, tax aspects of selling property, cost segregation studies and real estate professional tax qualifications
Financing your real estate investments
Managing your real estate
Why should you attend?
Would you like to be a residential real estate investor, but do not know how to proceed?
Have you heard that real estate provides tremendous rate of return and tax benefits and would like to learn more?
Would you like to know how to structure a real estate investing or operating business and capture the related tax and asset protection benefits?
Are you interested in real estate, but don΄t want to manage properties and have the business consume your time or life?
While real estate offers opportunities for high net worth families to reduce their marginal income tax rates, do you know how to actually accomplish that result?
Are you concerned about how you would properly manage real estate investments, including buying right and managing the investments after the purchase?
What alternatives are available to reduce risks of investing in real estate?
How would you best structure this activity (business structure, tax returns, accounting processes, etc.)?
How does an investor forecast and achieve the returns that are desired?
What real estate strategies are available to reduce your income taxes?
Did you know that real estate can shelter ongoing cash returns, and can provide an opportunity to receive cash in emergencies without triggering a tax liability?
Would you like to know more about running a real estate business from a self-directed IRA or 401-K?
Would you like to know the tax rules related to investing in vacation and short-term rental properties?
Areas Covered in the Session:
Passive and non-passive real estate business types; their pros and cons
Tax attributes of real estate and how to capture the related tax benefits
The sources of real estate investment returns
Real estate business and tax structure alternatives
Financial ratios that real estate investors should know
Accounting for real estate investments
Acquiring real estate - evaluation of markets, financing alternatives
Real estate investments - a great solution for retirees
Modeling the finances of a real estate investment project
Planning your exit from a real estate project
Real estate and your estate
Potential real estate pitfalls
Day 1 Schedule:
Real estate business types
Real estate business structures
Real estate quality types
The basic tax attributes of real estate by business type
Your real estate business plan
Getting things done
Real estate market research
Sources of investment returns in real estate
Buying an investment property
Information needed to evaluate potential real estate investments
Real estate financial ratios
Real estate financial modeling
Real estate due diligence
Real estate pitfalls and traps
Financing your real estate acquisitions
Day 2 Schedule:
Selecting a property manager or managing the property yourself
Real estate business team members
How complicated is this business anyway?
Real estate professional status
Accounting for investment properties
Using QuickBooks effectively; working with your bookkeeper and CPA
Real estate tax returns - Forms 1040, 1120, 1120S, 1065
Cancellation of debt income; bankruptcy and insolvency
The closing statement
Tax depreciation for real estate investors
Cost segregation studies
Capitalizing vs. expensing costs
Recording loans and interest
Section 1031 Exchanges
Selling or refinancing your real estate
Minimizing taxes on real estate sales
CPA, Certified Depreciation Professional;
Bruce Warner CPA is a residential real estate investor and owner of a CPA firm. See http://bearlaketax.com/. He specializes in real estate taxes, and advises high net worth families and retirees on tax strategies and building their net worth. He has been involved in real estate investing personally for many years.
His real estate business endeavors include property management, real estate financial services (tax compliance, accounting and payroll) and real estate marketing.