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Investor beneficiary tax deductions

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This topic contains 5 replies, has 0 voices, and was last updated by Avatar of buzzbox buzzbox 10 years, 8 months ago.

Viewing 7 posts - 1 through 7 (of 7 total)
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  • #5586
    Avatar of buzzbox
    buzzbox
    Participant

    If the RB is entitled to loan interest and property tax deductions, so called “active” deductions, and the SB is allowed a depreciation deduction, so called “passive” deduction, are there any deductions available to the IB, either before the SB is taken out, or after if an IB remains?

    #29103
    Avatar of joecain
    joecain
    Member

    Good Morning Dave -

    Not sure from your post which exact deductions you believe that you may be entitled to take. I am not a licensed professional tax consultant, but I believe that if you have some business expense being paid out by you along the lines of part of the monthly payment obligation or initial closing cost to set up the Trust, then you should have a conversation with your very own licensed professional tax consultant regarding this deduction and how you can realize this benefit. On the other hand, if you have no expense, what deduction are you looking for?

    #29104
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @Buzzbox wrote:

    If the RB is entitled to loan interest and property tax deductions, so called “active” deductions, and the SB is allowed a depreciation deduction, so called “passive” deduction, are there any deductions available to the IB, either before the SB is taken out, or after if an IB remains?

    There may not specifically be any tax deductions or benefits for an “Investor” Beneficiary but as an Investor, you have many. For example, I not only have an Office, but I also have a Home Office. In addition to the Home Office deductions, all my business related expenses may also become “deductions”.

    I am of the belief that if you are paying any federal taxes at all, you are not taking advantage of all the available tax deductions you are entitled to. Other than my families groceries and some utilities, virtually everything I do or pay for is “legally” deductible in some way.

    I would suggest that you speak with our own Tax Attorney, Maurice Kempner. He has a tax program that will educate and inform you on all the tax benefits you are entitled to as a Real Estate Investor or Small or Home Based business owner.

    Anyone in any kind of business for themselves should be able to reduce their taxable income by $10,000 to $30,000 per year without trying.

    I recommend a book by Sandy Botkin, “How to Reduce Your Taxes BIG TIME!”

    Some of the more obvious expenses that may be deductible to you as a business owner and Real Estate Investor might be…

    1. Your NARS Membership
    2. On going business related expenses
    3. Website Setup and Costs
    4. Direct Mail, Signs, Ads
    5. Mileage (this is huge since everywhere I drive I’m looking for houses)
    6. The NARS Annual Cruise
    7. Percentage of the Square Footage of your Home
    8. Cell Phone
    9. Fax Line
    10. Business Cards and Marketing Material
    11. Office Supplies, Paper, Ink, Toner, Pens, etc.
    12. Meals, if you meet with someone. Never ever eat alone.
    13. Pay your children to help you. My 12 year old son helps me at meetings and “Models” for my website, brochures and marketing material. He no longer gets an allowance, he gets a paycheck, which is deductible to me an non-taxable to him, under certain limits. With his earnings he buys all his own cloths, birthday gifts, movies, etc.

    Like I said, check out the program available from Maurice Kempner.

    #29105
    Avatar of areyes
    areyes
    Member

    I just had my taxes done by Maurice last weekend and he deducted my marketing/advertising expenses, websites, hosting, internet, cell phone, commute to investor meetings or seller/buyer meetings, education courses, etc

    I also asked him about IRC163H4D in regards to SB and RB taking partial deductions and confirmed it with 2 extra court cases out of this thick reference book. Why did I ask this question? Because there may be a deal where the seller is paying negative cashflow or paying their share on the HELOC/2nd mortgage which allows them to take partial deductions (active) as a beneficiary. He’s very confident with this IRS code.

    I’d recommend you get in touch with him.

    I’m not a CPA/tax attorney. Just a computer guy.

    #29106
    Avatar of buzzbox
    buzzbox
    Participant

    Thanks all, most helpful. You’ve answered my question.

    #29107
    Avatar of aliao
    aliao
    Member

    @Scott_L._Moyes wrote:

    ………

    I would suggest that you speak with our own Tax Attorney, Maurice Kempner. He has a tax program that will educate and inform you on all the tax benefits you are entitled to as a Real Estate Investor or Small or Home Based business owner.

    ……..

    Scott,
    Could I get Maurice’s contact information from you?
    I like to get some helps from him.

    Thanks,
    Alex

    #29108
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @aliao wrote:

    Could I get Maurice’s contact information from you?
    I like to get some helps from him.

    Call the NARS Office and ask Lori for his contact info (800-207-4273)

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