The Effects of 2018 Tax Changes on the Real Estate Industry
How much are you overpaying the government every year on your taxes? This is what we cover on episode three of Today’s Real Talk, where we’re joined by Ed Lloyd of Ed Lloyd and Associates. Ed runs a CPA and accounting firm and has significant experience helping small business owners and those in real estate with their taxes and finances.
We start out this episode of our podcast by covering recent changes to the Tax Code and Jobs Act. Some of these changes are the biggest seen in over 30 years, and many of them have affected the real estate industry tremendously. One of the biggest changes we’ve seen since the 1980s, more specifically 1986, is that real estate professionals can now take more deductions than in the past to maximize their income come tax season. Previously, there was a severe limit imposed on the number of deductions real estate professionals could take when doing their real estate taxes.
We also go over the types of business structures and making sure your business operates under the right structure for the greatest tax benefit. While the tax rate for corporations has come down significantly as a result to changes to the Tax Code and Jobs Act, businesses, and those in real estate specifically, still need to ask themselves if their current structure makes sense based on their income and if they are accounting for things correctly to maximize deductions.
Additionally, we go over what real estate professionals can and can’t write off on their taxes in light of changes to the tax code, like gifts for clients, dues, fees, and licensing. Like with any deduction, there are limits and regulations, so we spend a few minutes addressing this popular real estate tax topic.
Whether you’re in the real estate business or own a small business, make sure you watch the full episode to make sure you’re on the right page with your taxes. And of course, join us next time for another informative episode!