Tax Roadmaps

For many Realtors, the home office isn’t just where the day starts — it’s the business’s command center. The IRS allows two ways to deduct home office expenses, but choosing the right one can make a big difference. Simplified Method: $5 per square foot, up to 300 square feet. No tracking individual bills or repairs. Actual Expense Method: Deduct a percentage of actual home expenses like mortgage interest, utilities, property tax, and insurance based on the office’s square foo

Selling at the right time can influence how much tax you pay. Timing Tips: Hold property for at least a year to qualify for long-term capital gains. Coordinate closing near year-end to shift taxes to the next filing cycle. If your income fluctuates, sell in a lower-income year. Bonus:  Split sales or partial closings can stagger income and reduce tax pressure. 💡 Key Takeaway:  The right month can matter as much as the right buyer — timing is a tax strategy, too. ⚠️ This blog

Depreciation reduces taxable income; amortization spreads out loan costs. Both are non-cash tools that build long-term value. Types of Depreciation Straight-Line:  Even deductions over asset life (39 years for commercial). Accelerated:  Larger deductions early on, improving near-term cash flow. Amortization:  Covers intangible items like loan fees or tenant improvements. Tip:  Time your methods to align with your exit strategy — aggressive early write-offs may trigger recaptu