Tax-Saving Series: Part 1 - Real Estate Strategies to Cut Your 2023 Taxes - Palma Financial

With only two months remaining in 2023, we are excited to kick off Part 1 of our Tax-Saving Series, which is dedicated to helping you cut your taxes effectively. This installment focuses on Real Estate Strategies, a powerful tool for reducing your 2023 tax bill.

What is a Real Estate Professional?

Did you know that you can unlock significant tax advantages by becoming a “Real Estate Professional” according to IRS guidelines? It’s not just for licensed real estate agents; engineers, entrepreneurs, and business owners can also qualify. To do so, you’ll need to meet specific IRS criteria, including the “50% Test,” “750 Hours Test,” and “Material Participation Test.”

Why Does it Matter?

Becoming a Real Estate Professional can remove Passive Activity Loss (PAL) limitations and alleviate the burden of 3.8% Net Investment Income Tax (NIIT). This status enables you to offset rental losses against other non-passive ordinary income, leading to substantial tax savings.

Act now to assess your eligibility and take action before the year-end. Detailed records are essential to prove your compliance with IRS requirements. Don’t hesitate to contact us today to schedule your tax saving assessment and embark on your journey to significant tax savings.

Schedule your tax assessment by clicking here, replying to this email, or calling (408)708-9330.