Are you a Real Estate Agent? Broker? Investor? Don't Make These Tax Mistakes!!!

Are you a real estate agent? broker?

Make sure you are not making these TAX MISTAKES ON YOUR TAXES this year given the new tax law changes:

1) As you know, under the new tax law effective 01/01/2018, real estate taxes and state income taxes are now capped at 10k this year. Any amount over $10k would not be deductible.

If your standard deduction is higher than your itemized deductions, make sure your tax professional allocate some of your real estates taxes paid and mortgage interest on your HOME OFFICE DEDUCTIONS schedule.

Your HOME OFFICE DEDUCTION is on schedule 8829. This would enable you to claim deductions that you couldn't otherwise claim on your schedule A.

2) Make sure your tax professional evaluate your legal entity and determine which entity is best for you given the new tax law. Is it LLC, S-corp, C-corp?

There are so many changes to the tax law this year. PLEASE ENSURE YOUR LEGAL ENTITY WOULD SAVE YOU THE MOST $$$$ ON YOUR TAXES.

3) Your large expenses must be properly segregated on your taxes to avoid the risk of an audit. Do not lump huge expenses on your taxes. Itemize thoroughly all your expenses.

I represented several real estate agents during an IRS audit last year and I witnessed most of these mistakes.

Schedule C filers are the most audited taxes.