With Trump’s new tax laws, Mark Kohler, a CPA and Attorney, talks about the new law and how it affects us as individuals and as Real Estate investors. The new law is generally broken up into three parts- individuals, businesses and corporate. The corporate part isn’t really something that we need to be concerned with but the individual part and business part is what is most important to most of us.
For individuals with a job, about 80% of us will see a savings on our taxes ranging from $1,000 to $7,000. This is because the standard deduction has been doubled and since about 80% of Americans don’t itemize their taxes, these new deductions will put a lot of money into the hands of the people that really need it. Of course these new rules go into effect this year, 2018, so the changes won’t be seen until tax time of 2019.
As for Real Estate investors that primarily invest in what is known as passive income investing, which are rental property including your LLC structures, the new tax laws have no effect on your business.
Another part of investing is ordinary income from wholesaling, fixing & flipping and rehabbing.These are taxed differently and if you are a Realtor or Broker then you fall into another category altogether. You can check out the video below for more information.
Filed under: Real Estate