Income Taxes for Real Estate

Nobody can make a single real estate decision without knowing the tax consequences and how to fine tune the transaction to deliver tax benefits. Earns 3 hours Alabama real estate CE, eligible for CLE, and open to the public. 

1. Dealers vs investors and different tax treatments (helps you structure a deal for maximum tax benefits)
   
2. Options and tax deferral (sell today and move income into a later tax year without needing to go through a 1031 exchange)
3. 1031 exchanges (yes, still available and still affects pricing decisions if you know somebody has 1031 pressure)
4. Self-directed IRAs (avoid taxes completely with right vehicle)
5. Stepped up basis (knowing this allows you to overcome unspoken seller reluctance)
6. Accelerated depreciation (especially if you intend to hold property for only 3-5 years, load up your deductions in those years)
7. Interest carry long term capital gains treatment if you take "part of the deal" as your compensation
8. Renting out primary and vacation homes (including how to move money from one of your accounts to another one and save thousands on income taxes)
9. Charitable gifts of appreciated real estate (get a tax deduction equal to the appraised value, not your basis)
10. Seller financing tax treatment (can make a difference in how a deal is structured)
11. Avoiding estate taxes (gift out shares to heirs but retain control and money during life)
12. Asset protection strategy overview (because sometimes this explains deal structuring)