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Maximizing Tax Season For Real Estate Professionals


Tax time can be one of the best times of the year for real estate professionals. Even if real estate agents, investors and CEOs aren’t anticipating tax refunds, this can be one of the most profitable periods of the year if tackled appropriately. So how many different ways are there for those in the real estate industry to capitalize on tax season? How big is the opportunity presented at this time of the year? How can you strategically position yourself to lead the competition next year? The answer to these questions, and more, will be detailed below.

Maximizing Deductions

Real estate investors, agents and business owners need to get serious about filing and taking full advantage of all of the deductions and write offs available to them. This can easily add double digits to annual investment returns and business performance, as well as helping to keep thousands of dollars in their pockets. Many might even be eligible to get money back from the previous year, and lock in big ‘losses’ for reducing their tax burden next year when they may have made a lot more income. Sure you can file yourself; but consider the advantages and profit in investing in professional help.

Tax Planning

Even if you are able to substantially reduce the expected tax burden for this year, there could be far bigger savings and winnings to be had next year and every year from here on out if smart tax strategies are put in place. This may include better record keeping, planning timing and types of expenditures, relocating offices and reclassification of vehicles as well as capitalizing on vehicles like 1031 exchanges and self-directed IRAs.

Becoming a Magnet for Millions of Dollars

According to data, the Internal Revenue Service (IRS) has shelled out almost $150 billion in tax refunds beyond what it should have over the last 120 months alone. This represents just the tip of the iceberg. Much of these billions are blown on completely frivolous items. Between this mountain of disposable income, those eager to invest their return money and those that have been waiting for the down payment money to buy a home there is huge opportunity for real estate investors, agents and companies that position themselves to be recipients of it. The more people and businesses real estate professionals can serve, the more rewards they’ll be in line to receive.

The first step is to have more of what the public wants. For most, this means inventory. This could be rental units, wholesale properties, turnkey rentals, land, commercial property, or just investment opportunities.

The second part of the equation is getting visibility and making sure people are aware of the inventory and service available. This can be done with targeted lead generation, following up with current databases, press and other forms of direct real estate marketing.

Forging Partnerships for Dominating the Market

Real estate professionals that are really serious about winning will recognize the need to grow their own businesses and look for ways to forge and build strategic partnerships. This could be a couple weeks of collaboration or a year round collaboration. Think exclusivity and locking up lead flows from various firms to keep the competition locked out and at bay.

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