1852 Flatbush Avenue - 2nd Floor
Brooklyn, New York 11210
|Client Update - quarterly newsletter||
Real Estate Taxation & Property Insurance
Ask the expert
This year, the New Federal Administration proposed to increase Individual Tax Rate from 37% to 39.6%, and increase Capital Gains Tax Rate from 23.8% to 43.4%. Be Prepared.
Activities we focus on:-Appraisal, Planning, Acquisition(buy or like-kind exchange), Operation, Repossession, Foreclosure, Bankruptcy and Sale.
Property:-Residential, Mixed-use, Commercial & Industrial.
Services we provide:-Tax Planning; Tax Preparation; Advisory; IRS & State Tax Resolution; Natural Disaster & Social Pandemic Risks Assessments, Planning & Management.
Knowledge of Mortgage:-Loan Origination, Processing, Underwriting, Closing, Warehousing, and Sale of Mortgage to another company. There is also "Bridge Loan"; "Home Equity Loan" ; Home Equity Line of Credit" or 2nd Mortgage; and there is "Reverse Mortgage". Reverse Mortgage is often used by senior citizens to withdraw equity/money from their property. It is different from a Home Equity Loan because usually senior citizens don't have to make repayment.
How your Interest Rate is determine:- Everybody doesn't get the same interest rate from a mortgage lender. If you apply to a lender for a mortgage, the interest rate or APR you will be qualify for is dependent on the size of the risk involved. It is a Combination of FIVE risk factors:-
#1)Your Credit Score.
#2)The amount of money you put for downpayment.
#3)Your Debt-to-Income ratio.
#4)The Property location.
#5)The ratio of the mortgage/loan to the value of the property (LTV).
Tax Preparation for Owners and Investors.
Every year we prepare tax returns for over 1,800 Real-Estate Owners, Investors and "Flippers". They operate as Individuals, Corporations, LLP's and LLC's. We prepare Single-state and Multi-state tax returns for property they own in their State and in other States (NY, NJ, CT, PA, DE, GA, FL, CA, AZ, and NV). They have been our clients for 2 to 25 years. We obtain them from Direct Mailing from our exclusive database of Real-Estate Owners, and Property Managers/Agents. Some of them come to the OFFICE, some of them FAX their documents to us. Most of them send us their documents by UPS, DHL, FedX and the Post Office.
"We are laser-focus and tenacious. With us in your corner, you will be empowered to make great business decision. You will always have a knowledgeable and valuable resource to turn to for practical and profitable business and financial advice in your industry and in other industries. Written testimonials we obtained during our annual clients surveys are overwhelmingly impressive".
My best selling book, "Sweet Success", by Clemson Barry is on Amazon.
Lets get to the specifics!!
We know your industry ("Industry-specific" knowledge); and we are aware that a high or low tax bracket can affect your tax liability. Your tax returns will be completed Quickly, Efficiently, and Accurately. We will use EVERY regulatory tax loophole, credit, deduction, and exclusion in the new tax laws to reduce or eliminate your tax liability and put a BIG smile on your face. You have a lot of work to get done. Let's start today!!!
Samples of Tax Breaks
Real Estate tax breaks are too numerous to fully discuss here. Her are a few samples:-
#1)First-time home buyers can make early withdraw of up to $10,000 from their TRADITIONAL IRA to make a down payment, or pay the closing cost without incurring a 10% penalty for early withdrawal (example:-If you withdraw $100,000, you will pay 10% penalty on $90,000).
#2)If you RENT your Private Residence or Vacation Home to a Tenant or a Film/Movie Company for less than 14-days during the year, the rental income you received is NOT taxable (Tax Exempt).
#3)If you install a Solar Electric/Energy System in your home, you will received a ONE-TIME Federal "Residential Energy Credit" of 26%; and up to $5,000 Energy Tax Credit from NY State. (Example:- If the system cost you $30,000, you will get a FederalTax Credit of $7,800 and NY State Tax Credit of $5,000 on your tax return). Bring/send us the documents you signed with the contractor/company to substantiale your claim/purchase.
#4)If your use Home Heating Oil in your boiler or heating system, you can claim the NY State "Clean Heating Fuel Credit" of up to $0.20 per gallon. (Example:- 1,800 gals per year @ $0.20 = $$360 tax credit).
#5)You can LEGALLY avoid paying NY State sales tax on home improvement items (Capital Improvement) that you plan to install in your home(Boiler, Windows & Doors, Central Air Condition, New Roof, etc). Ask the Contractor for a "Certificate of Capital Improvement". Fill out the form and sign it to waive the sales tax (example, a new boiler for $7,500 x 8.875% sales tax equals $665.63 you can keep in your pocket. It's perfectly legal).
#6)OPERATING EXPENSES:-You are qualified to deduct Annual Operating Expenses for each rental property you own; and you may qualify to deduct a total of up to $25,000 of Operating Loss.
#7)NATURAL DISASTER:- You are qualified for a tax deduction if your property (house, vehicles, and business) was damaged or destroyed by Natural Disaster.(Fire, Flood, Hurricane, Earthquake, Volcano,Tornado). This includes property that was damaged or destroyed in federal declared disaster areas, as was experienced by some of our clients in the aftermath of hurricanes:-Ida in 2021; Harvey in 2017; Sandy in 2012; Ike in 2008; Katrina 2005; Andrew in 1992; and fires and earthquake on the West Coast. Disaster Relief Payments that you received from ALL sources (Your Insurance, FEMA, etc. are tax exempt. We need the reports that you received from your Insurance Company Adjuster and FEMA to prepare your Federal & State tax retruns.
#8)PROPERTY SALE:- If you Sell your Residence or Rental property, we will save you thousands of dollars in Capital Gains Tax. Bring us the documents that you received at the closing when you purchased the property and when you sell the property.
#9)PROPERTY EXCHANGE:- "Like-kind Exchange" is exchanging your property for another property that has similar characteristics and value. If you no longer like your property, you can exchange it with the owner of a similar property. Example:- a 2-family rental exchange for another 2-family rental; or a 3-family rental exchange for another 3-family rental, etc. Meet with the owner of the property that you want to receive in the exchange. Have both Attorneys close the deal; and give us the documents to support your claim and report the transaction to the IRS & State.
#10) MORTGAGE Non-COMPLIANCE ISSUE:- You MAY be able to postpone paying income tax If your property was on a Forbearance plan and you have successfully completed a Mortgage Modification; or you Loss or "Disposed off" your property in Bankruptcy or Foreclosure (Repossession). Give us the documents to support your claim. Our methodology/strategies are very effective; and we put our Commitment and Reputation behind them. Let's start today!!
Who are the Owners & Investors: -
1)Investors and "Flippers"(Buy, Fix, and Sell within 12 months)
2) Residential owners ( 1 to 4 family house; Vacation homes; Condos., Co-ops.).
3) Mixed-use or Commercial owners (Residence upstairs and store fronts downstairs; Apartment buildings; Shopping centers/malls).
4) Home Builders and Land developers.
What we want from Owners & Investors
1) Your Cell Phone number and E-mail address for quick communication.
2) A paper copy of the last tax return you filed.
3) Paper copy of your Forms W2 and 1099.
4) Forms W-2G winnings from casino, State Lottery, Horse race, etc.
5) A list of your job related expenses.
6) Real estate Gross Income and Expense Analysis for each property you are claiming.
7) A copy of your Driver's license or State ID. (Starting in 2016, the IRS required the information be included on ALL tax returns to help combat Identity theft).
8) Social Security card and birth certificate for each dependent you are claiming.
9) Your Credit Card or Bank Account Information to pay for the service.
Real-Estate Related Education and Training.
*MS Taxation; and IRS Enrolled Agent - (1989 to present).
*Licensed Insurance Broker - (Property & Casualty).
*Real-Estate Salesperson and Broker certificates - (Pohs Institute, N.Y).
*Real-Estate Employment - (Century-21, Greenfield).
*Real-Estate Annual Continuing Education - (NYU and Pohs Institute).
*Mortgage Underwriting & Banking Certificates - (Mortgage Bankers Association of America).
"Your article on Real Estate Taxation is excellent. I have read bits and pieces of the subject in magazines, brochures, and handouts at seminars, but this is the most comprehensive article I have read on the subject. The answers you gave were well researched." -Jan Davidson, General Contractor, Beverly Hills, CA.
"I used to live in New York and travel to my clients in New Jersey and Connecticut. I rented out my residence in New York and relocated to another residence I had in Georgia. I sold my residence in Georgia and relocated to California. Finally, I sold my residence in New York. Barry's tax planning advice saved me $18,000 in prepayment penalties, $30,000 in seller's concessions, and $69,860 in capital gains tax. Barry has been preparing my tax returns and advising me for 20 years. I could not have chosen a better person to look after my interests." - Sylvia Fortune, District Sales Manager, Los Angeles, California.
"We 'flip' real estate for a living in NY, PA, FL and GA. The mistake we made was reporting income from the sale of those properties as capital gains. Barry amended those tax returns and got us back thousands of dollars in tax refunds. He has been our tax advisor for several years." - Eva and Allan Hopkin, Real Estate Investors, Laurelton, New York.