Lubbock REIA
Welcome to the Lubbock REIA! Calculate deals, connect with investors, and save with exclusive sponsor discounts.
Upcoming EventsUpcoming and Recent Meetings
View Channel
Community Activity
View AllProperty management
I am considering using a property managemenent company in Lubbock. Any recommendations?
Safe Harbor Regulations For Tax Deductions
For those of you who missed last night’s meeting, Here is a brief synopsis of the Safe Harbor regulations that real estate owners should be using on a yearly basis to increase cash flow and reduce their tax liability. TAX SAVINGS OPPORTUNITIES: THREE SAFE HARBORS FOR PROPERTY OWNERS How the IRS Safe Harbors Can Help Property Owners Deduct More Costs Now The IRS tangible-property regulations provide several safe harbors that can allow qualifying costs to be deducted currently rather than capitalized and depreciated over many years. ________________________________________ 1. DE MINIMIS SAFE HARBOR ANNUAL ELECTION PROPERTY BY PROPERTY USE Small-Dollar Property & Improvements The De Minimis Safe Harbor allows qualifying taxpayers to expense certain small-dollar purchases that otherwise might have to be capitalized. Current thresholds: • $2,500 or less per invoice or item. The taxpayer generally must have a consistent accounting policy to expense these items and must make the appropriate annual election with the tax return. Example: A property owner purchases $2,000 of qualifying equipment or components. If the requirements are met, the cost can be expenses and not capitalized as long as it is not part of a major improvement. ________________________________________ 2. ROUTINE MAINTENANCE SAFE HARBOR ONE TIME STATEMENT ON TAX RETURN Recurring Repairs & Maintenance This safe harbor can allow certain recurring maintenance costs to be deducted rather than treated as improvements. Generally, the work must: • Be a recurring activity; • Be expected because of the property's use; • Keep the property in ordinarily efficient operating condition; and • Be reasonably expected when the property is placed in service, to occur at least twice in a 10-year period. For buildings and building systems, the expectation is generally that the activity will be performed more than once during the 10-year period beginning when the property is placed in service. Examples may include: recurring inspections, cleaning, testing, and replacement of worn or damaged components with comparable parts. Important: The safe harbor does not apply to betterments or adaptations to a new or different use. ________________________________________ 3. SMALL TAXPAYER SAFE HARBOR ANNUAL ELECTION ON TAX RETURN A Special Rule for Smaller Property Owners A qualifying small taxpayer may elect to deduct certain amounts spent on a building rather than capitalize them as improvements. Generally, the taxpayer must have: 1. Average annual gross receipts of $10 million or less; 2. Building property with an unadjusted basis of $1 million or less; and 3. Total annual spending on repairs, maintenance, improvements and similar activities that does not exceed the lesser of: • 2% of the building's unadjusted basis, OR • $10,000 maximum. The election is made annually for qualifying buildings by attaching the appropriate statement to the timely filed tax return. I’d be happy to provide a complimentary, no-cost and no-obligation review of your real estate portfolio to identify potential tax-saving opportunities. David DeLamar, CSSI Lubbock.costsegregationservices.com 806.773.6382 Cost Segregation Services, LLC
Ballenger Neighborhood Assignment Available
*** Property has been assigned!!!*** I have a contract that I am looking to assign to an investor! Address: 1306 41st St Beds: 2 Baths: 1 Sqft: 967 Garage: enclosed (1 bay) ARV: $95-102k Rehab: $40-45k Asking Price: $29k Occupancy Status: Vacant (easy to show) Google Link: https://drive.google.com/drive/folders/1aeHZeCOBhCFQxh6nnqsHMEdsi7oKv3ot?usp=drive_link If the link does not work, text me your name and I'll send you the drive 806-632-3725
Ready to Start Investing?
Join Lubbock's premier real estate investment community and access exclusive tools, events, and networking opportunities.