Lisa K Hentschel

Tax Tips from Asset Exchange Company

Lisa Hentschel — Sat, 06 Mar 2010 19:55:00 GMT

With our filing deadline quickly approaching, it seemed appropriate to share some information I received from Leonard. Happy tax season!

The following is an excerpt from Leonard Spoto - Asset Exchange Company

"Tax Breaks You Don't Want to Forget About "

"With tax season fast approaching and April 15th around the corner, we figured it would be appropriate to discuss the significant tax benefits that accompany real estate ownership. Remember when filing your return to take full advantage of the following:
Mortgage Interest Expense
The government allows all of the interest associated with the financing of the property to be written off as an expense of owning the property. For many real estate investors, especially those with interest only loans, this expense deduction can be substantial.

Depreciation
Depreciation is a method for matching the costs of acquiring property over the properties estimated economic life. The IRS now requires that most properties be depreciated using the straight-line method of depreciation (27.5 years for residential properties, 39 years for commercial properties). Depreciation will act as an intangible expense and will shelter income from taxes.

Expense Deductions
Many of the costs associated with owning and managing a real estate investment, such as management fees and insurance premiums, are deductible. One deductible expense worthy of note is the travel expense. Many real estate investors acquire real estate in places they like to (or have to) visit, and each time they travel to the property, the travel costs are a deductible expense. Not a bad deal if the property happens to be in Maui or around the corner from a relative.

Passive Losses
Due to depreciation and expense deductions, it is possible to own a property that is producing positive cash flow, but for tax purposes showing a loss. These “passive losses” are subject to certain restrictions, but in many circumstances can be used to offset passive income from another investment. In the event an investor qualifies as a "full time real estate professional" passive losses can be used to offset ordinary income. Full time real estate agents should have no problem qualifying for maximum passive loss benefits."
The subject matter in this newsletter is intended as general information only and not intended as tax or legal advice. Please always consult your tax or legal advisor for any specific tax or legal matters. To reach Leonard, call 877-471-1031 or see his website at www.ax1031.com

Fall Cleaning

Lisa Hentschel — Thu, 21 Aug 2008 02:43:00 GMT

Cooler evenings, earlier sunsets and slight changes in the folliage all indicate Fall is around the corner. I find myself "Fall" cleaning instead of "Spring" cleaning. I don't know about other people, but for me it's a necessary ritual as summer winds down. Start moving the white summer clothes toward the right of the closet as they rotate to the top rack for winter. Clean those blinds one more time. Throw out unread or over-read magazines piling up under the coffee table. Weed those potted plants. I'd much rather be reading a good book - but it has to be done.

Like everything else in life, change is inevitable. As seasons change, we are keenly aware of changes we need to make to prepare for what we know lies ahead.

It occurred to me today that our real estate market is going through some cleaning as well. Gone are loan programs, lenders, brokers, banks, realtors - the list goes on. I was reminiscing about families I've met along the way whose lives have been changed dramatically as a result of the market cleaning. For some, the loss of homes. For others, an opportunity to become a first time buyer.

Change is good. It's often painful but necessary. The market has changed. Lives have changed. But good is not just around the corner - It's already here. Where are you at in your cleaning? What changes will make your life better with the new season of real estate?

2 Story For Sale in Crosswoods

Lisa Hentschel — Tue, 12 Aug 2008 06:00:00 GMT

Tranquility at it's best!

• 1,428 sq. ft., 2 bath, 3 bdrm 2 story - MLS® $224,990 USD - Priced to SELL

Crosswoods, Citrus Heights - Lovely 3 Bedroom 2-story with 2-car garage! Updates include dual pane windows, with new carpet and appliances in 2001! Cozy gas-piped, wood-burning fireplace will warm you in the winter. Well cared for with low maintenance fenced back yard. Gate to wooded greenbelt and nearby creek! Community features trees galore, pool, clubhouse and walking trails. Near library, parks, transit, schools and shopping! Incredible price! FHA financing possible. Lease Option considered!

Property information

8305 Argo in Citrus Heights is Sold!

Lisa Hentschel — Sat, 19 Jul 2008 06:00:00 GMT

Citrus Heights, Sacramento County - The single story at 8305 Argo has been sold.

Property information