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Realty in the Mountains Blog
 Steve R Patterson
 41  7674  12/10/2021

Realty Blog

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What Qualifies As Real Estate Professional Activities When Filing Taxes

What Qualifies As Real Estate Professional Activities When Filing Taxes

When filing taxes, some activities are considered to be professional, whereas others are not. The IRS provides the following list of what qualifies as a profession and what does not:

*If you pay someone else to prepare your tax return or review your return for you, then that is considered a service and not a profession.

*If you work in real property management or appraising, this is considered a profession.

WHAT REAL ESTATE PROFESSIONAL STATUS Means for You

In the United States, there are two types of real estate professionals: individual and business. If you are a real estate professional, your profession is considered a business. A real estate professional has specific tax responsibilities that must be adhered to by the taxpayer, including filing a Schedule C or Schedule E.

Real estate professionals have a status that means the IRS considers them experts in the field. They can engage in a broader range of activities than other service professionals.

According to the IRS, real estate professionals include:

-Brokers or salespeople who hold themselves out to the public as experts who are primarily engaged in selling real estate or lending money on real estate;

-Real estate appraisers, except those whose services are primarily related to appraising real property;

-Real estate agents who hold themselves out to the public as experts who are primarily engaged in selling real estate; and

-Real estate developers or contractors who hold themselves out to the public as experts primarily engaged in building, renovating, or repairing the property.

-Real estate agents who hold themselves out to the public as experts primarily engaged in selling real estate.

-Real estate agents who hold themselves out to the public as experts primarily engaged in selling real estate.

WHAT QUALIFIES AS REAL ESTATE PROFESSIONAL STATUS

If you are a self-employed taxpayer, you need to file Schedule C or Schedule E. The only way to determine if you qualify as a real estate professional is by answering yes or no to the following questions:

*Do you act as an agent for someone else in connection with the sale of real property?

*Do you act as an agent for someone else in connection with the rental of real property?

*Do you spend more than half of your time working in real estate activities?

*Do you have a business structure of sole proprietor, partnership, or corporation?

You are considered a real estate professional if you answer yes to any of these questions.

WHAT DOES NOT QUALIFY AS REAL ESTATE PROFESSIONAL STATUS

Some activities that don't qualify for real estate professional status are:

*If you are a certified public accountant or enrolled agent, this is not considered a profession.

*If you conduct real estate business as part of your job, then this is not considered a profession.

*Substitute buying or selling through another person or firm.

*Acting as a subagent by dividing commissions with the agent.

*Paying a commission to the listing agent.

*Representing the buyer or tenant in a transaction.

WHAT ARE THE TAX BENEFITS OF REAL ESTATE PROFESSIONAL STATUS

A few tax benefits come with being a real estate professional. The first benefit is that you can deduct business expenses from your income. This includes any expenses related to the real estate's activity, such as advertising, office supplies, and travel.

Another benefit of being a real estate professional is that you can use the loss from the business to offset other income. For example, if you have a job and your real estate business generates a loss, you can use that loss to reduce the amount of taxes you owe on your job income.

The third benefit is that you can take the home office deduction. If you use part of your home for business purposes, you can deduct a portion of your home expenses. The last benefit is the ability to contribute more money to a retirement plan, such as a Solo 401k or a SEP IRA. To qualify for this deduction, you must be self-employed and contribute no more than 25% of your net income or $51,000, whichever is less.

Here's How You Can Target The Real Estate Market Using TikTok

Here's How You Can Target The Real Estate Market Using TikTok

There hasn't been another app that has grown exponentially in such a short period of time as TikTok has. In just a few years, it has more than 800 million registered users worldwide. " target="_blank">reference] It's comparable to bigger social media apps like Facebook and Instagram. So it's only logical to use it as a way to reach a bigger audience for your real estate business.

At first, migrating your business to this platform might feel scary – and risky. But every content can be adapted to TikTok to help expand the business.

In Short Words, What Is TikTok?

TikTok is a social media app that allows users to upload 15 to 60-second videos. A key characteristic of TikTok is that you can place audio in your videos. It can be a song or regular voice audio, what matters is to make creative and interesting content. These videos are mostly funny and unusual from anything you've ever seen on other social media platforms.

Most of TikTok's users are aged between 16 to 24 years old. Most of them might not have money to afford real estate at the moment. Just remember that having exposure and growing an audience will always be good for business. Besides, there are still older people using TikTok, and they are potential clients as well.

How To Use TikTok For Real Estate Marketing

You can use this platform to deliver any kind of content if it's well done. There are probably not too many real estate agents here like in other apps like Instagram or Facebook. See this as an advantage, this is your chance to be a pioneer and to reach a younger audience.

Study the Platform

Just start using the app like you normally would, but this time try to study it. Take a look at the content that's being made, the language they use, the topics they carry. There's no point in creating content if no one's going to watch it, so it's safer to study the platform first.

Understand Hashtags

Hashtags on TikTok work the same as on Instagram. People can follow hashtags and popular hashtags will be displayed more often to users. Just search for #realtor and study their content. See which content gets has more engagement and which hashtags they're using.

Here's a tip: Videos are mostly everything on TikTok. That means that you should keep your captions short and concize to have more space for hashtags. The more hashtags you use, the better. You could also try creating your own hashtag challenges and see how that goes.

How to use TikTok for Real Estate Agents [ Step by Step TUTORIAL + Marketing Strategy ]

How Dealing With Rejection Helped Barbara Corcoran

Phil Town on CNBC's The Millionaire Inside

Phil Town on CNBC's The Millionaire Inside (Photo credit: Phil Town)

How Dealing With Rejection Helped Barbara Corcoran

Barbara Ann Corcoran is a highly successful investor, consultant, and businesswoman. She is famous for being a shark investor on the ABC show Shark Tank.

Throughout most of her life, Barbara Corcoran felt that she has been most shaped for her business endeavors not by her successes, but by her failures and her rejections. Everybody fails, but she stresses that the important part of failure is not letting it affect you in a negative way. It is the staying down part that will hurt you the most, not the failure itself. It is important to get back on your feet again and prepare to go after the next potential client, instead of sulking on the failure and letting it ruin your outlook.

Analysis Of The State Of The Real Estate Market With Zillow

Nov 01 2013
452
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Analysis Of The State Of The Real Estate Market With Zillow

Zillow's strategy for online real estate market domination

All the stakeholders from different sectors of the economy including bankers, reporters, government officials, think tankers, lawmakers and other sundry wonks met in downtown Washington at the Ronald Reagan Building to brainstorm ways to reform the housing finance system.

3 Real Estate Scams And How To Avoid Them

Half million dollar house in Salinas, Californ...

Half million dollar house in Salinas, California under foreclosure. (Photo credit: Wikipedia)

3 Real Estate Scams And How To Avoid Them


One of the attendees during the May AARP conference shared her experience on how she had been conned by a fake company posing as a state affiliated housing agency. The victim was left at least 5 figures poorer after coughing up a whooping ten thousand dollars to the fraudsters. Well, this is a common experience shared by many people who fall prey to these criminals.

These scams have become so popular and so sophisticated that even though consumers are aware of them, they just have no idea how to avoid them. The three most common scams include loan modification scams, rental scams and workshop scams.

Crowdfunding And Real Estate

I Festival Crowdfunding en CAMON Madrid

I Festival Crowdfunding en CAMON Madrid (Photo credit: Espacio CAMON)

Crowdfunding And Real Estate - A New Environment

Over the past five years the concept of crowdfunding has created an entirely new perspective on how to raise capital for projects. What started as a way to raise a few thousand dollars to make a video or produce a CD has morphed into an exciting new world of financing. In 2011 over $1.5 billion was raised in these small projects. It is believed that number doubled in 2012.

Bay Buchanan Enters The World Of Real Estate

Feb 01 2013
384
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Bay Buchanan, spinning for Romney

Bay Buchanan, spinning for Romney (Photo credit: nicco)

Bay Buchanan Enters The World Of Real Estate

The Former United States Treasurer, Angela "Bay" Buchanan, is stepping into a new role in sales.  This follows a typical mold when it comes to career change for politicians.  First comes a public office campaign, then attaching to a new pol, followed by using the speaking circuit to his or her advantage.

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