Yes, it’s tax time again. Do you despise paying taxes more than I do? I doubt it!
Last month I finished the business taxes (Jachin, Inc. : I feel strongly that real estate agents should incorporate for a variety of reasons. If you are a REALTOR and are not incorporated, let’s talk!) and have started on the personal return. I work closely with my accountant on tax planning for the upcoming years and preparing the tax returns. I have found having a great accountant (CPA in my case) can more than save what you pay and in the hassle of keeping up with IRSchanges. After all, I feel strongly those buying and selling real estate should use a real estate professional who brings value and expertise to the transaction so why not use a tax professional to assist with your tax planning and preparation? I don’t give tax advice but will point out several interesting article which may interest you. For some of the potentially more complex real estate transactions (tax differed exchanges, short sales, foreclosures, strategic defaults, investment properties, Virginia land sales with roll back taxes, land sales with timber, etc.) having an accountant in addition to an attorney on our team from the start proves beneficial to my clients pocketbook and stress level!
Here are some interesting tips you may want to check out (found on the National Association of REALTORS web site): Homeowner Schedule A Deduction Traps; Ten Errors Not to Make; Look to the Future & 2011 Energy Tax Credits; Homeowner 2010 Return Tips; and 2010 Energy Tax Filing Tips.
For Virginia Home Owners you may want to subscribe to the Virginia Association of REALTORS e-mail updates through the Virginia Homeowner’s Alliance. You’ll get e-mail on real estate issues affecting your area of the Commonwealth in addition to Statewide issues (alerts on legislation affecting you in the General Assembly, how to challenge your tax assessment, etc). As your advocate for private property rights and real estate issues we’ve developed the Virginia Homeowners Alliance to keep you, the property owners, informed.
As always, the only bad question remains the one you do not ask. If you have a real estate questions or know someone who does, I am here to help, so let’s talk!