5 Common Tax Issues for Realtors

I own some rental properties. Can I get any kind ofcan count part of your rent as a deduction for your
deductions from those properties?home business.
You can and here's how: If you're paying a mortgageLast year I made really good money and ended up
on the property you can claim the interest on the loanowing the IRS. When the money was coming in I didn't
as a deduction.have any problems paying. Now that there's a slump in
Now you do have to report the rent you receive asthe market I can't afford to pay the debt. What options
income on your tax return, so don't forget that. But anydo I have?
repairs or improvements you make on those rentalRight now you probably still have too much equity and
properties are valid deductions.assets to qualify for a settlement offer. Of course
If I owe the IRS money and I'm able to sell a houseyour industry can and most likely will make a recovery.
can they seize the money I make off of that?The best thing for you to do if you owe and you can't
Absolutely, the commission you make off of a housepay in full right now is to enter into a monthly payment
sale count as wages as far as the IRS is concernedplan until you're in a better financial situation. While
and they can seize any money you make to payyou're in a payment plan the IRS shouldn't take any
down the debt you owe to them. The IRS won't takekind of collection action against you.
it all, but they'll only leave you with about 50% of whatI'm considering bankruptcy. Can I get my tax debt
you would have made.included in the bankruptcy?
I work out of my home. Are there any deductionsIt's not likely that you'll be able to. You can't include any
available to me that can help out with my tax return?tax debt in a bankruptcy if the debt is less than three
If you work out of your home and you can prove toyears old. If you're financial situation has occurred
the IRS that you conduct the majority of business outwithin the last couple of years then you wouldn't be
of your home you can write off a portion of yourable to include it.
mortgage payments for the year. Even if you rent youNow you have the smoking gun...Use it!