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Archives for August 2018

How 2018 Tax Law Changes Affects Real Estate Investors

Here at Camuso CPA, we offer a wide array of tax services for investors including tax preparation and tax planning. Financial service companies are transitioning from employee driven revenue models to information driven revenue models. Camuso CPA strives to deliver useful insights and offer relevant explanations about the latest tax and financial topics.

In our Tax Topics & Guides segment, we are taking a more in depth approach in covering all things tax, real estate and finance.

While the full implications of the Tax Cuts and Jobs Act are still unraveling, a number of tax-planning opportunities have presented themselves. Here we will outline how performing cost segregation studies can lead to permanent tax savings. On 22 December 2017, the President signed tax reform legislation known as the Tax Cuts and Jobs Act (TCJA). This is primarily known for reducing corporate tax rates to 21%, but the new Section 199A provides non-corporate taxpayers with a potential 20% deduction against taxable income, which, when applicable, effectively discounts the maximum 37% non-corporate rate to 29.6%.

   

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If you searching for CPA firms to assist you with reporting cryptocurrency income and capital gains, contact Camuso CPA. Whether you need tax preparation services, assistance with properly reporting gains and income from virtual currencies on your taxes, cryptocurrency portfolio analysis, or any other service provided by a certified accountant, Camuso CPA can help.

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Charlotte Office Developers in Amenities Arm Race to Attract Tenants

Companies looking to attract talent are now offering top amenities, a modern office space and a healthy work environment with a sense of community. Firms are willing to pay a higher rate for office space if it provides a place that employees want to work. One of the trends we have observed this year in commercial office space is enhancing the work environment.

According to a recent Pew Research Center analysis, millennials have become the largest generation in the U.S. workforce. To attract today’s workers, office users are offering an abundance of amenities. Companies are now providing gaming lounges and even napping rooms, coffee shops with baristas and onsite bars with wine and craft beer on tap.

There has also been a shift toward a more open office layout with collaborative break-out areas. With this shift, companies offer phone rooms for private calls and quiet rooms with comfortable couches where employees can unplug from the highly productive work area. Employees are also more health conscious today and typically prefer standing desks, adjustable seats, bike storage, on-site gyms with showers and healthy snacks in the break room.

Developers recognize these trends and are building new office spaces in Charlotte loaded with amenities such as rooftop patios with gardens, collaborative work areas, food delivery services, outdoor walking trails and convenience services such as a concierge, dry cleaning and personal package drop-off areas.

Here at Camuso CPA, we do have the ability to offer tax preparation and planning services to our real estate clients. If you are interested into how this might benefit your business or portfolio, please don’t hesitate to give us a call today. One of our friendly and knowledgeable representatives will be happy to answers any questions you have.

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How Real Estate Investing Impacts Investors Tax Rate

Investors focus on real estate for a variety of reasons. There are great tax benefits for real estate investors and most investors agree that, while supplemental, they invest to reduce their tax burden.

After consulting and strategizing with hundreds of investors, I’ve come to realize that most don’t actually know how real estate investing impacts tax rates. Here at Camuso CPA, we offer a wide array of tax services for real estate investors including tax preparation and tax planning.

Effective Tax Rate – What Is it?

The effective tax rate is defined at the tax liability divided by total net income. Your federal tax liability is found on Line 63 of Form 1040. However, if you hold a W-2 job, you also need to factor in your share of FICA taxes (7.65% of your gross wages). Lastly, you should also factor in your state tax liability. The combination of these three taxes will yield your total tax. You will then divide your total tax by gross wages plus net income from trades, businesses, and investments. Note that net income does not equal net taxable income. The result will be your effective tax rate.

Real Estate Benefits

The largest benefit for real estate investors results in additional non-cash deductions that they can take against their rental income such as depreciation and amortization. These benefits can be furthered increased through cost segregation studies.

Many real estate investors may see an increase in total tax and think that real estate is not offering its promised tax benefits. But that’s clearly not the case. Thanks to the real estate generating income that was not taxed, our effective tax rate drops meaning you are paying less in tax per dollar earned.

Here at Camuso CPA, we do have the ability to offer tax preparation and planning services to our real estate clients. If you are interested into how this might benefit your business or portfolio, please don’t hesitate to give us a call today. One of our friendly and knowledgeable representatives will be happy to answers any questions you have.

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How Tax Reform Impacts Real Estate Investors Tax Rates

Here at Camuso CPA, we offer a wide array of tax services for real estate investors including tax preparation and tax planning.

While the full implications of the Tax Cuts and Jobs Act are still unraveling, a number of tax-planning opportunities have presented themselves. Here we will outline how performing cost segregation studies can lead to permanent tax savings.

On 22 December 2017, the President signed tax reform legislation known as the Tax Cuts and Jobs Act (TCJA). This is primarily known for reducing corporate tax rates to 21%, but the new Section 199A provides non-corporate taxpayers with a potential 20% deduction against taxable income, which, when applicable, effectively discounts the maximum 37% non-corporate rate to 29.6%.

How Does It Work

The 20% discount requires a complicated formulaic deduction equal to: (1) 20% of newly defined qualified business income plus (2) 20% of the sum of (a) REIT dividends and (b) publicly traded partnership income. For taxpayers with income over certain minimal thresholds, the 20% of qualified business income deduction is limited to the greater of: (a) 50% of the W-2 wages paid by the qualified business, or (b) 25% of the W-2 wages paid by the qualified business, plus 2.5% of the unadjusted basis of depreciable property held by the business.

These limitations are calculated at the individual level and the statutory language indicates that the limitation is to be applied separately for each qualified trade or business that the taxpayer is engaged in.

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Here at Camuso CPA, we do have the ability to offer tax preparation and planning services to our real estate clients. If you are interested into how this might benefit your business or portfolio, please don’t hesitate to give us a call today. One of our friendly and knowledgeable representatives will be happy to answers any questions you have.

Read more