chaseforeclosureblog.com » Accounting

Meet The Real Estate Accountant

Christian Chase — Sat, 07 Aug 2010 17:12:21 +0000

Learn from our real estate accountants how to properly structure your investments to maximize profits.

Seminar -Meet The Real Estate Accountant

Christian Chase — Tue, 13 Jul 2010 22:23:43 +0000

New Class - Meet The Real Estate Accountant

Chase Real Estate is pleased to provide its investors with an opportunity to have their accounting questions answered concerning real estate and investing at the upcoming Chase Seminar. Where: Chase Real Estate 1315 Macom Dr. Suite 105 Naperville, IL 60564

Sign-Up By Clicking Here

“George has saved me $1000′s in taxes – you need an accountant who specializes in real estate.” – Christian Chase

Class Date: 8/5/2010Time: 6:45pm

The Organized Real Estate Investor

Christian Chase — Thu, 08 Jan 2009 17:48:48 +0000

How do you keep all of your investment properties straight? This is a question I get asked the most. I have a simple system for organizing my property. The answer is: Classification Folders. I prefer folders with six page inserts.

On the first page I attach closing documents and place the HUD-1 or Settlement Statement. On the second page I attach a copy of the insurance policy. The third page is where I attach receipts for remodeling and repairs. The fourth page I attach paperwork pertaining to the lease of the unit. I keep on the fifth page all bills regarding utilities gas, water, electric, association. The last page I reserve for the sale documents. When the property has closed I attach the HUD-1 or settlement statement to this last page. I now have a complete file with all documents required for accurate and easy accounting. Give it a try! It has worked great for me the past 10 years.

Sell Property To Yourself

Christian Chase — Mon, 27 Oct 2008 15:38:11 +0000

Selling property to an S-Corporation may be beneficial in some specific situations, like if you are trying to meet requirements for the two year rule ($250/500k exclusion), or if you are trying to take advantage of depreciation on appreciated property.

For example, say you lived in a property for three years, and rented it out for the next seven years – since you haven’t lived there for two out of the last five years, you cannot sell the property as a primary residence to avoid the capital gain.

However, after moving out of the property, you sell it to your own S-Corporation, which allows you to exclude capital gain (up to $250k, $500k if married filing jointly) because requirements for the two-year rule have been met. The other advantage is you can have a new basis for depreciation on your appreciated property.

Say you purchased a home for $50k many years ago, and it is worth $500k now. If you decided to rent it out, the basis for depreciation would be the original basis of $50k. But after selling it to your S-Corporation, you can depreciate the new basis of $500k. Clearly this will bring you substantial tax savings.

Selling to your S-Corp isn’t for everyone though. You should avoid using this strategy if you cannot take advantage of the exclusion amount. For example, you sell your primary residence with a gain of $240k to your S-Corp, and pay no tax due to the exclusion. However, if you did not meet the exclusion, the $240k gain would be taxed at ordinary income tax rates, and it would have been more beneficial to just sell the property and pay capital gains tax of 15% instead.