Rental property rules for business owners: passive losses, real estate professional status, short-term rentals, 1031 exchanges, and qualified improvement property.
34 guides, each reviewed by a CPA licensed in the US and Canada.
A 1031 like-kind exchange under IRC 1031 defers capital gains and depreciation recapture taxes when selling business or investment real estate.
Small Business & BookkeepingA 1031 like-kind exchange (IRC 1031) allows real estate investors and business owners to defer capital gains tax and depreciation recapture when selling.
Small Business & BookkeepingA like-kind exchange under IRC 1031 allows a taxpayer to defer capital gains tax on the sale of investment or business real property by reinvesting.
Small Business & BookkeepingA 1031 like-kind exchange allows a real estate investor to sell an investment or business property and defer all capital gains tax by reinvesting.
Small Business & BookkeepingA like-kind exchange under IRC 1031 defers capital gains tax when selling business or investment real property and reinvesting in replacement property.
Small Business & BookkeepingA like-kind exchange under IRC 1031 allows a real estate investor to defer capital gains tax indefinitely by exchanging one investment or business-use.
Small Business & BookkeepingA 1031 exchange lets you sell business or investment real estate and defer all capital gains tax by reinvesting in a replacement property.
Small Business & BookkeepingA like-kind exchange under IRC 1031 allows a taxpayer to defer capital gains tax when selling investment or business-use real property and reinvesting.
Small Business & BookkeepingMixed-use property rules: General rule: when property is used for both business and personal purposes, only the business-use portion of expenses.
Small Business & BookkeepingThe passive activity loss rules under IRC 469 prevent taxpayers from using losses from passive activities (businesses in which they do not materially.
Small Business & BookkeepingPassive activity losses can only offset passive activity income, not wages or active business income. active income (the three income buckets): | Income.
Small Business & BookkeepingIRC 469 prevents taxpayers from using passive activity losses (rental properties, limited partnerships) to offset active income (W-2, business profits).
Small Business & BookkeepingPassive activity losses can only offset passive activity income (IRC 469). Material participation requires 500+ hours per year.
Small Business & BookkeepingThe IRS classifies real estate investors into three participation levels, each with different tax treatment. Three levels of real estate participation: |.
Small Business & BookkeepingQualified Improvement Property (QIP) is depreciable over 15 years and eligible for 100% bonus depreciation. What qualifies as QIP: - Interior walls.
Small Business & BookkeepingInvesting capital gains into a Qualified Opportunity Zone Fund (QOZF) under IRC 1400Z-2 defers recognition of the gain and, if held for 10 years.
Small Business & BookkeepingQualified Opportunity Zones (QOZs) under IRC 1400Z-2 allow investors to defer and potentially exclude capital gains by investing in designated low-income.
Small Business & BookkeepingBusiness owners can defer and potentially reduce capital gains by reinvesting in Qualified Opportunity Zone Funds. Covers key rules, filing requirements,.
Small Business & BookkeepingQualified Opportunity Zone (QOZ) funds allow investors to defer capital gains by reinvesting proceeds into designated economically distressed census.
Small Business & BookkeepingInvesting capital gains into a Qualified Opportunity Fund (QOF) defers the gain until 2026.
Small Business & BookkeepingUnder IRC 469(c)(7), a taxpayer who qualifies as a real estate professional can treat rental real estate activities as non-passive.
Small Business & BookkeepingReal estate professional status (REPS) under IRC 469(c)(7) is one of the most valuable tax classifications a taxpayer can achieve because it allows rental.
Small Business & BookkeepingUnder the passive activity loss rules of IRC 469, rental activities are generally treated as passive regardless of the owner's participation level.
Small Business & BookkeepingA Section 1031 exchange allows business owners to defer capital gains tax when selling one investment property and purchasing.
Small Business & BookkeepingA Section 1031 exchange allows a business owner to sell real property and defer all capital gains tax by reinvesting the proceeds into replacement.
Small Business & BookkeepingRenting property you own to your own S-Corp or C-Corp is a common tax strategy.
Small Business & BookkeepingShort-term rentals (Airbnb, VRBO, and other vacation rental platforms) have tax rules that differ significantly from traditional long-term rentals.
Small Business & BookkeepingWhen a business owner buys commercial real estate (office, retail, warehouse, or mixed-use), the tax implications span depreciation, interest deductions.
Small Business & BookkeepingMixed-use property creates some of the most complex tax calculations in the individual and small business tax code because the same property serves.
Small Business & BookkeepingReal estate developers face one of the most consequential tax classifications in the code: dealer vs. investor. Dealer vs.
Small Business & BookkeepingRental property investing offers unique tax advantages that no other investment class can match. Tax benefits of rental property.
Small Business & BookkeepingIntellectual property (IP) has unique tax treatment depending on how it is created, acquired, and monetized. IP classification and tax treatment: | IP.
Small Business & BookkeepingRenting your home for 14 days or fewer per year makes the income completely tax-free (the 'Masters exemption'). Above 14 days, the personal use vs.
Small Business & BookkeepingIRC 280A establishes the tax rules for properties that serve dual purposes as both personal residences and rental properties.