Taxation in Real Estate
The purpose of this class is to do four things:
- Introduce the residential real estate agent to basic taxation and to basic investment analysis.
- Relate that knowledge to the specific concerns of residential homeowners, both primary and second homes.
- Relate that knowledge to the specific concerns of owners of investment real estate.
- Demonstrate how this knowledge can increase the real estate agent's commission income and investment income.
At the completion of this course, the student will be able to:
- Discuss the tax code and how it affects different aspects of the real estate industry
- Explain basic taxation and how brokers can use it to help their clients
- Define the meaning of marginal tax rate
- Describe the specific concerns for residential homeowners, owners of real estate used in a trade or business, as well as the owner of investment real estate
- Demonstrate how this knowledge can increase the real estate agent's commission income and investment income
- List the major reasons for home ownership
- Explain gain and basis and how the client can compute capital gain on the sale of a home
- Illustrate to potential clients why it is important that they seek professional advice from a CPA
- Summarize how purchasing a rental property for an investment can be a tax advantage
- Illustrate how cost recovery is used as a deductible expense
- Explain how income and losses are identified (passive and non passive income)
- Classify the three types of vacation homes and discuss their tax consequences
- Explain the rules and benefits of the 1031exchange
- Discuss CRTs and how they can help avoid capital gains tax, increase income, and create tax deductions.
- The Code
- Taxes and the Homeowner
- Primary Residence
- Sale / Exchange
- Other Disposal
- Rental Taxation
- Vacation Homes
- 1031 Exchange
- Charitable Giving
- Taxes and the Agent
The course contains numerous multiple choice exams, interactive exercises, and is completed with a multiple choice final exam.