Every Landlord's Tax Deduction Guide (2nd Edition) [Paperback]

Stephen Fishman (Author)

Book Description

Publication Date: November 30, 2005

This bestseller is the only book on tax deductions specifically for residential landlords! If you own rental property, you should be taking advantage of the many tax write-offs available. Every Landlord's Tax Deduction Guide gives residential landlords the plain-English guide they need to save money on taxes -- without the services of a high-priced accounting firm.

This book explains how to maximize your deductions. Find out how to:

fill out IRS Schedule E take real estate tax credits figure out if an expense is a repair (deductible) or an improvement (depreciable) maximize your depreciation deductions deduct losses arising from real estate ownership keep proper tax records deduct home office, travel, casualty losses â€" and much more Every Landlord's Tax Deduction Guide is comprehensive yet easy to read, jam packed with interesting and relevant examples. The 2nd edition is completely updated to reflect the latest tax information and numbers

Table of Contents

Introduction

A. Why You Need to Know About Tax Deductions B. The Ever-Changing Tax Laws C. Icons Used in This Book

1. Tax Deduction Basics for Landlords

A. How Landlords Are Taxed B. How Income Tax Deductions Work C. How Property Ownership Affects Taxes D. The IRS and the Landlord

2. Landlord Tax Classifications

A. The Landlord Tax Categories B. Business Owner Versus Investor C. Are You Profit Motivated? D. Real Estate Dealers

3. Deducting Your Operating Expenses

A. Requirements for Deducting Operating Expenses B. Operating Expenses That Are Not Deductible

4. Repairs

A. Repair Versus Improvement B. The General Plan of Improvement Rule: A Trap for the Unwary C. How to Deduct Repairs D. Tips for Maximizing Your Repair Deductions

5. Depreciation Basics

A. Depreciation: The Landlord's Best Tax Break B. Understanding the Basics C. How to Depreciate Buildings D. Depreciating Land Improvements E. Depreciating Personal Property F. When You Sell Your Property G. Tax Reporting and Record Keeping for Depreciation

6. Maximizing Your Depreciation Deductions

A. Determining the Value of Your Land and Buildings B. Segmented Depreciation

7. Interest

A. Interest Landlords Can (and Can't) Deduct B. Mortgage Interest C. Other Interest Expenses D. Points and Prepaid Interest E. Interest on Construction Loans F. Loans With Low or No Interest G. Loans on Rental Property Used for Nonrental Purposes H. Keeping Track of Borrowed Money

8. Start-Up Expenses

A. What Are Start-Up Expenses? B. Determining Your Business Start Date C. Avoiding the Start-Up Rule's Bite D. How to Deduct Start-Up Expenses E. If Your Business Doesn't Last 15 Years F. If Your Business Never Begins

9. The Home Office Deduction

A. Qualifying for the Home Office Deduction B. Calculating the Home Office Deduction C. IRS Reporting Requirements D. Audit-Proofing Your Home Office Deduction E. Deducting an Outside Office

10. Car and Local Transportation Expenses

A. Deductible Local Transportation Expenses B. The Standard Mileage Rate C. The Actual Expense Method D. Other Local Transportation Expenses E Reporting Transportation Expenses on Your Tax Return

11. Travel Expenses

A. What Are Travel Expenses? B. Deductible Travel Expenses C. How Much You Can Deduct D. Maximizing Your Travel Deductions

12. Hiring Help

A. Deducting Payments to Workers B. Employees Versus Independent Contractors C. Tax Rules When Hiring Independent Contractors D. Tax Rules for Employees E. Hiring Your Family F. Hiring a Resident Manager

13. Casualty and Theft Losses

A. What Is a Casualty? B. Calculating a Casualty Loss Deduction C. Disaster Area Losses D. Casualty Gains E. Tax Reporting and Record Keeping for Casualty Losses

14. Additional Deductions

A. Dues and Subscriptions B. Education Expenses C. Gifts D. Insurance for Your Rental Activity E. Legal and Professional Services F. Meals and Entertainment G. Taxes H. Unpaid Rent

15. Vacation Homes

A. The Vacation Home Tax Morass B. Regular Rental Property C. Tax-Free Vacation Home D. Vacation Home Used as Rental Property E. Vacation Home Used as Residence F. Calculating Personal and Rental Use G. Converting Your Home to a Rental Property

16. Deducting Rental Losses

A. What Are Rental Losses? B. Overview of the Passive Loss Rules C. The $25,000 Offset D. The Real Estate Professional Exemption E. Rental Activities Not Subject to PAL Real Property Rental Rules F. Vacation Homes G. Deducting Suspended Passive Losses H. Tax Reporting for Passive Rental Losses I. Strategies for Dealing With the Passive Loss Rules J. At-Risk Rules K. How to Deduct Rental Losses

17. Record Keeping and Accounting

A. Record Keeping Made Simple B. Accounting Methods C. Tax Years

18. All About Schedule E

A. Who Must File Schedule E? B. Filling Out Schedule E C. Schedule E Example

19. Claiming Tax Deductions for Prior Years

A. Reasons for Amending Your Tax Return B. Time Limits for Filing Amended Returns C. How to Amend Your Return D. How the IRS Processes Refund Claims

20. Help Beyond This Book

A. Secondary Sources of Tax Information B. The Tax Law C. Consulting a Tax Professional

Index

Editorial Reviews

Review

"The best part of the book is that it's written in a way that will make themost sense to investors." -- Real Estate Matters Real Estate Matters Real Estate Matters

"This book cannot be recommended too highly.... explains rental property tax deductions clearly and details by using 'hidden deductions'..." -- Los Angeles Times

It simplifies the complicated, makes boring tax laws interesting, and offers landlords the major financial incentive of saving tax dollars. -- Bob Bruss, nationally syndicated columnist

About the Author

Stephen Fishman received his law degree from the University of Southern California in 1979. After stints in government and private practice, he became a full-time legal writer in 1983. He has helped write and edit over a dozen reference books for attorneys. He is the author of Software Development: A Legal Guide, Copyright Your Software, The Copyright Handbook, Consultant & Independent Contractor Agreements, Wage Slave No More: Law & Taxes for the Self-Employed, and Hiring Independent Contractors: The Employer’s Legal Guide, all published by Nolo.com.

Products by Stephen Fishman, Attorney:

-Consultant & Independent Contractor Agreements -The Copyright Handbook: How to Protect & Use Written Works -Deduct It! Lower Your Small Business Taxes -Every Landlord's Tax Deduction Guide -Home Business Tax Deductions: Keep What You Earn -Nondisclosure Agreements: Protect Your Trade Secrets & More -The Public Domain: How to Find Copyright-Free Writings, Music, Art & More -Web & Software Development: A Legal Guide -What Every Inventor Needs to Know About Business & Taxes -Working for Yourself: Law & Taxes for Independent Contractors, Freelancers & Consultants -Working With Independent Contractors

Product Details

• Paperback: 250 pages
• Publisher: Nolo; 2nd edition (November 30, 2005)
• Language: English
• ISBN-10: 1413304214
• ISBN-13: 978-1413304213
• Product Dimensions: 8.8 x 6.9 x 1.1 inches
• Shipping Weight: 1.4 pounds
• Average Customer Review: 5.0 out of 5 stars  See all reviews (5 customer reviews)
• Amazon Best Sellers Rank: #515,875 in Books (See Top 100 in Books)

Customer Reviews

Most Helpful Customer Reviews

43 of 43 people found the following review helpful:

5.0 out of 5 stars Absolutely Essential, October 31, 2006

By 

sarayale "sara" (Oakhurst, NJ) - See all my reviews

Amazon Verified Purchase

This review is from: Every Landlord's Tax Deduction Guide (2nd Edition) (Paperback)

I am a law student at Yale Law School and my husband is an attorney. We own and I manage about 5 rental properties. This book is absolutely essential for anyone owning a rental property. Do not depend on your accountant as a substitute as most accountants will not know this kind of detailed information about real estate rentals (unless they specialize in it or maybe have their own rentals.) My accountant who has been in practice over 20 years did not know a lot of essential stuff which I had to guide him through(it may be time for a new accountant). If I had not read this book I would have been doomed. Because I can qualify for the unlimited deduction (not just $25,000) for rental losses, we have literally saved tens of thousands of dollars in taxes we would have otherwise had to pay on my husband's salary, legally, with the guidance of this book. I cannot recommend this book highly enough. It is written in a very easy to understand format and gives you almost all the information you need in one place. You cannot rely on others to properly arrange your financial affairs in this specialized area. By reading this book you will know how to buy, finance, and repair properties in ways that produce the most effective tax benefits. Consider yourself lucky that you are aware this book is out there and purchase immediately if you own rentals.

12 of 12 people found the following review helpful:

5.0 out of 5 stars The Book to Get, September 4, 2006

By 

J. Heffner (San Francisco, CA) - See all my reviews

This review is from: Every Landlord's Tax Deduction Guide (2nd Edition) (Paperback)

I've just acquired several rental properties and needed a book that had tax information all in one place. I got a couple other books, but this one is the one that I use all the time. It's easy to read and understand while still explaining the nuances of tax law, and has good strategy and planning ideas for repairs/improvements etc. It also addresses what is and is not deductible as you are starting out (i.e. before you actually buy a property).

No book will replace a professional accountant, but I have a feeling that my accountant will be grateful that I've used this book come tax time, as I will have categorized things correctly, saved the right receipts, and will understand what he is talking about when he is explaining my return.

7 of 7 people found the following review helpful:

5.0 out of 5 stars How to maximize profits and stay legal., March 11, 2006

By 

D. Donovan, Editor/Sr. Reviewer "California B... (California, USA) - See all my reviews

This review is from: Every Landlord's Tax Deduction Guide (2nd Edition) (Paperback)

Landlords know the main benefit of owning residential rental property is the many tax deductions which stem from such ownership, covering everything from improvements to expenses. This second edition has been updated to reflect the latest tax information and numbers: it covers everything from how to keep tax records and supporting documentation to deducting losses. Maximize profits and stay legal: keep EVERY LANDLORD'S TAX DEDUCTION GUIDE's latest edition on your desk.