Tax breaks , incentives & allowances your entitled to

Discussion in 'Wealth Creation & Management' started by renovator, Jun 16, 2014.

  1. 97guns

    97guns New Member

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    im getting my information from a tax consultant, this is what he says about the insurance payoff

    Most property insurance settlements are not taxable as income. Generally, these settlements are designed to indemnify you as the insured person or restore you to your pre-loss condition, at least financially. You do not owe taxes on settlements that fall below your cost basis for an item. Because cars and other property tend to depreciate in value, it is unlikely you will achieve a financial gain from your settlement. For example, if your car cost $20,000 and your settlement is only $4,000, you have not profited from the settlement, even if you keep the money in lieu of repairs.

    like i said above i take around a 3K depreciation on each property

    as for my mileage deductions there is nothing to prove, just like the log you supplied that is all i need to supply to them, no receipts, its all up to them to deem my mileage deductions excessive


    i really dont know why the haters come out when i speak of my abilities but never fails they always do
     
  2. dccpa

    dccpa Active Member

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    Not hating on you at all, but what you wrote was wrong and others might have acted on it to their detriment. Do you really believe you can claim 7-10k miles for your rental property and the IRS will just take your word for it? The receipts are needed to back up the mileage. The IRS doesn't need to deem your miles excessive, they will deem that you never drove those miles. You really have no clue how easy it is to determine fraudulent mileage. Insurance reimbursement for damage to a personal vehicle is different than insurance reimbursement for damage to a depreciating asset. If you believe excessive insurance reimbursement does not have income tax consequences, I have some environmentally sensitive property in Florida I would like to interest you in. Heck, we can even do a 1031 exchange.

    I notice you have stopped talking about deducting the reimbursed expenses. What you posted appears to be a cut and paste from some article by an online tax author. Who is this mystery tax consultant?
     
  3. dccpa

    dccpa Active Member

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    $13000k rent per year, $3000 depreciation. $800-1200 insurance and $1000-1500 real estate taxes and no mortgage on three of the properties. That would put your AGI at about $25-32k. Of course, that is before all your legitimate mileage. :rolleyes:

    Btw, nice monthly rent on < $100k properties.
     
  4. 97guns

    97guns New Member

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    ty for not hating, i figured you for one of them. my rents are not 13K across the board, just these 2 examples, im grossing a few thousand less on the others. total gross income jumped this year to an estimate of around 62K, im sure i will be paying with this added property

    equity growth has done very well, picked up the properties in '09 for around 80K each, the one i added this year was 167K
     

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