Dave Lindahl’s WealthBuilder’s Gold Coaching Program
TIP OF THE WEEK: Tax Planning Time 12-15-2008
Tax Planning Time
Its time to take a moment and see if there are any deductions you can create before the year end.
The December 2, 2008 Dave Teach call with Al Aiello offered some great tax tips that you can
take this year. Learn what Dave has been doing on all his properties for the last three years.
Other Tax strategies Al has covered include;
 Use Componentizing and Cost Segregation
 Depreciate 50% faster
 Take two deductions for each remodel job.
The call is posted on the Wealth Builder website. Take a moment to review and implement the
strategies.
Al has provided a tax deduction form for your Dave Lindahl training. This form is included in
this training brief.
Several other resources for further deductions have been located and are listed below.
Internal Revenue Service
Great resources available online for your real estate business.
http://www.irs.gov/businesses/small/topic/index.html
In addition to forms, manuals, and newsletters they offer free webinars on topics.
Rental, Rehab and more Tax Tips
http://www.irs.gov/businesses/small/industries/content/0,,id=98947,00.html
Financial Web Portal
Great articles with tax strategies and real estate tips.
http://www.finweb.com/taxes/a-few-investment-real-estate-tax-tips.html
Forbes Ten Real Estate Tax Tips You Missed 2006
A quick overview of some tax tips check out to see if any apply.
http://www.forbes.com/2006/04/11/cx_lr_0412homeslide.html?thisSpeed=6000
Happy Hunting
Paul Timmins
Paul Timmins
Paul@Rementor.com
(781) 241-9821
RECEIPT FOR PAYMENT OF DAVE LINDAHL
REAL ESTATE PUBLICATIONS
Date_____/_____20_____; Your name____________________________________________________
Received $__________________________for Real Estate Publications.
Full Tax Deduction: RE Investors
Beware of wrong advice from speakers and tax advisors!
You can deduct these real estate courses as well as conventions, seminars,
boot camps, cruises.
TAX LAW SUPPORT: Background & Misunderstanding - According to Internal Revenue Code
Section 274(h)(7), “No deduction shall be allowed under section 212 for expenses allocable to a
convention, seminar or similar meeting.” This very short clause has caused many people (including
speakers and tax advisors) to misinterpret this as meaning that real estate investors cannot deduct
expenses for a convention, seminar, similar meeting or even home-study courses. But the key wording
in the above provision is “Section 212”, which has to do with the production of more passive income,
such as that from stocks or bonds. This is opposed to Internal Revenue Code Section 162 which has to
do with a trade or business, such as real estate. Under IRC 162, such expenses are fully deductible.
The question is this -- Is the ownership of real estate an investment (Section 212), or is it a business
(Section 162)? There is substantial authority to support that the ownership of real estate (even one
property) is a business under IRC 162. Accordingly, being in the real estate business, you can deduct
these home-study courses, conventions and seminars under IRC 162 and IRS Regulation 1.162-5. (For
tax law authority supporting real estate as a “business” vs. “investment”, see Section 3-A of the
Goldmine.) Plus, for tax courses (giving tax advice) there is further support in that expenses paid for
tax advice are deductible as per IRS Regulation 1.212-1(l).
HOW AND WHERE TO FULLY DEDUCT: For all of the following IRS forms*, you attach a
separate schedule - “other deductions” on which you insert as an added line item - “Directly related
business education per IRC 162”. [*These IRS forms include the following: Rental property
Schedule E; Business Schedule C; The preferred partnership return-form 1065; Or Corporation
business return-form 1120 for a C-corporation or 1120S for an S-corporation].
BACK UP: Keep this receipt for your tax files supporting the tax-deduction.
Thank you for investing in yourself with a full tax deduction! Dave
__________________________________________________________________________________________
ACKNOWLEDGEMENT to Al Aiello (CPA, RE Investor) for preparing this tax
document. Al is considered the number one speaker in the country on real estate tax
strategies. His contact info – www.REINFO.com; 215-937-9207.