Archive for June, 2009

That Awesome Deduction That You Do Not Have To Pay Cash For; Yet It Generates Cash Flow In Your Pocket!

Sunday, June 7th, 2009 by Kathy Kennebrook

Albert Aiello, CPA, MS Taxation, RE Investor
I am talking about the most powerful deduction for the real estate investor – Depreciation — which is an annual tax write-off of the cost basis of assets held for rental or business-use, such as real estate.
Why this “NO-cash-out; yet cash-IN” phenomena?
The first part, “NO cash out” is [...]

Write Off Expenditures As Fully Deductible Repairs And Reap Huge Tax Savings In Your Pocket!

Tuesday, June 2nd, 2009 by Kathy Kennebrook

Albert Aiello, CPA, MS Taxation, RE Investor
There are three major tax-saving benefits of classifying expenditures as repairs rather than capital improvements. One of them is immediate tax savings. For example, the owner of a rental property is in a 31% tax bracket and pays $20,000 as a repair is an immediate deduction which is worth [...]