Benum Tax Advisors

If you are receiving notices from the IRS, are having your wages garnished, are experiencing a bank levy, the IRS has filed a lien against you, you owe payroll taxes, have unfiled tax returns, or you are facing an audit, we can help!

We stand by you, protect your assets and deliver real solutions to your tax concerns.

You could owe capital gains tax if you sell a home that has appreciated in value because it is a capital asset.

However, most homeowners are exempt from needing to pay it.

To be exempt from capital gains tax on the sale of your home, the home must be considered your principal residence. You must own the home and use it as your residence for at least 24 months (2 years) of the previous 5 years.

Tax treatment of mortgage interests for homeowners and real estate investors.

If you own stocks that pay dividends, you may need to pay taxes on that income.

Dividends are classified into two types:
- Qualified Dividends: These are taxed at the lower long-term capital gains tax rates (0%, 15%, or 20%).

- Ordinary Dividends: These dividends are taxed at your regular income tax rates (ranging from 10% to 37% depending on your tax bracket)

How to Know What Type of Dividends You Received?
You can find out the type of dividends you received by looking at your Form 1099-DIV, provided by your brokerage firm. This form will break down the amount of qualified and ordinary dividends you’ve earned throughout the year.

If you’re paying for bookkeeping, accounting, legal advice, property management or other services related to your real estate investments, you can deduct those fees as business expenses.

By keeping track of those expenses, you can lower your tax bill.

Have you fallen behind on tracking expenses or noticed discrepancies in your financial reports?
These are some signs that your business books need a cleanup.

Having your finances in order gives you a clear picture of your business’s financial health, helping you know what is really going on in your business and make better decisions while being compliant and ready for tax season.

Let's go Beyond Numbers!

If you are a real estate investor or agent, you can deduct advertising and marketing expenses related to your business.

These expenses include the costs incurred in promoting properties, services or listing, such as costs associated with online ads or advertisements in newspapers, magazines, brochures and flyers, expenses for business cards and social media marketing, the costs for creating and maintaining a professional website as well as SEO services, the costs of purchasing and installing signs to advertise properties and services, etc.

Effective bookkeeping is crucial for real estate investors to track income and expenses, manage cash flow, save money on taxes and make informed investment decisions.

Real estate investors can deduct landscaping costs if they are classified as maintenance expenses necessary for the upkeep of the property.

However, significant landscaping improvements that increase the value of the property must be capitalized and depreciated over time.

Some landscaping costs that are considered necessary for the property's day-to-day functioning and do not add value or extend the property's life are mowing the lawn, trimming hedges, replacing dead plants and other regular maintenance activities that keep the property in good condition.

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