Real estate investing has a long list of benefits for many investors, but few people are aware of the specific tax benefits, too. Real estate investing typically includes buying properties for investment purposes, which are most often used to generate income through long-term or short-term Airbnb rentals.
As tax season rolls around each year, homeowners are able to take advantage of some great tax benefits if they seek professional tax advice. Tax deductibles can amount to hundreds, if not thousands of dollars each year for homeowners so it’s important to know how these deductions work. So let’s take a closer look at what household expenses are deductible this year.
Understanding the different types of taxes that federal and state governments impose is critical to implement effective tax planning strategies. One of the most common taxes to watch out for is the capital gains tax. The capital gains tax is a tax on profits from investments that have been recently sold.The IRS has set up a graduated tax system for the capital gains tax.
Stimulus payments have been a lifeline for many Americans during COVID-19, but many were unable to receive the full payment amount due to life changes, income levels, or other determining reasons. The introduction of a Recovery Rebate Credit is now a way to help solve this issue for millions of Americans.
The changes to the Child Tax Credit are designed to assist families through the help of advance payments of credit as early as this summer. As part of the 2021 Advance Child Tax Credit Payments program, the IRS will pay half of the total credit amount for 2021 in the form of an advance monthly installment.