Memphis Real Estate Investing

4 min read

A Real Estate Investor’s Rundown of New 2018 Tax Benefits

By Chris Clothier on Fri, Oct 12, 2018

If you’re at all familiar with real estate investing, you know that one of the biggest advantages that proponents of real estate investment laud are tax benefits. This benefit, however, can sound vague to anyone who isn’t familiar with tax law or doesn’t handle their own taxes—and let’s be honest, most of us don’t!

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5 min read

5 Tax Advantages & Tips for Real Estate Investors

By Chris Clothier on Thu, Feb 18, 2016

Investing in real estate is a straightforward venture...in theory. Buy a property, rent out the property, make money off of the rent. Simple, right? Unfortunately, theory isn’t reality. We have to deal with things like market climates, taxes, insurance, property management, tenant screenings, turnover, and all sorts of unforeseen complications.

One of the most daunting things for anyone of any age, real estate investor or not? Taxes.

For us, there are some unique tax advantages that we can use to leverage real value. We aren’t talking about creative tweaking that bends the rules to create write-offs. We’re talking basic principles in real estate investment that can minimize how much you pay in taxes each year, thus maximizing your passive income.

Some of these are relevant for your annual taxes, while other will be relevant year-round and for your investment strategies and decisions!

Topics: Tax tips
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2 min read

Tax Tips for Investors in Cash Flow Real Estate

By Chris Clothier on Mon, Mar 12, 2012

If you haven't yet completed your 2011 tax returns, the time to start thinking about doing so is now. Even if you know your market and are confident in your success, if you are a cash flow real estate investor, then your tax return is likely to be much more complicated than the basic 1040 EZ form, but it isn't too difficult to do things right. Here are a few tips to get you started:

Cash Flow Real Estate Investor Tax Tips:

1. Keep all receipts.

The U.S. Government Accountability Office (GAO) explains the most common problem with the tax returns of those who buy investment property: lack of documentation. According to one article, "individuals (or couples filing joint returns) tend to misreport their net income from rental real estate activities more frequently than other types of income." The most common issue is cash flow real estate investors who don't keep excellent track of their rental income and their property expenses. If you want to be certain to avoid these problems, keep all of your receipts together in a safe place.
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