March 25, 2024
How to Prepare for Tax Season: 2023 Edition
Tax season is upon us! At MLG Capital, we know how important the benefits of tax can be for real estate investments. It’s important to us that our investors understand these benefits and how they may be able to use them to their advantage. This article provides a 2023 tax overview for real estate investors to better equip themselves for a successful tax filing year now and for years to come. Please note that the information provided in this article is not to be considered tax, legal or financial advice and MLG and the authors do not represent any recipient of this article. Please consult your tax professional regarding your personal tax situation. Tax Estimates: Throughout the 2023 tax year, you may have had tax estimates distributed to you or your financial professional (or both). As a passive investor, this will be a key starting point in understanding what your tax exposure looks like for 2023. For MLG Investors, we take great pride in issuing our tax estimates by December 31st each year. This is completed so that you and your tax advisors can plan accordingly as you await your formal K1s. Capital Gain and Loss: For real estate investors, 1231...
June 27, 2023
Bonus Depreciation: What is it and where is it going?
The contents of this article are not to be considered as tax advice and individuals should consult their own tax advisor as to tax advice. Recipients of the information contained in this article agree that MLG Capital, its affiliates and respective partners, members, employees, officers, directors, agents, and representatives shall have no liability for any misstatement or omission of fact or for any statement expressed herein. Starting in 2023, the powerful tax benefits of bonus depreciation that were provided by the Tax Cuts and Jobs act in 2017 will begin to phase out by 20% each year, for 5 years, until they reach 0% in 2027. As this benefit begins to phase out this year, individuals from all backgrounds should understand what this means for their current investment, future investments, and personal financial plan. This article will discuss what depreciation is, how it’s used in real estate to create tax efficiencies, and how the bonus depreciation phase out will potentially impact the real estate investing landscape in the coming years. Real Estate Depreciation 101: The IRS allows owners of real estate to deduct specific costs associated with buying and improving an asset from the owners’ income taxes, this practice is...
March 1, 2023
How to Prepare for Tax Season: 2022 Edition
It’s that time again, tax season is upon us! At MLG Capital, we understand the benefits that taxes, specifically as they relate to real estate investment, can provide for us and for our investors. It’s important to us that our investors understand these benefits and how they may be able to use them to their advantage! This article provides a 2022 Tax outline roadmap for real estate investors to better equip themselves for a successful tax filing year now and for years to come. Tax Estimates: Throughout the 2022 tax year, you may have had tax estimates distributed to you or your financial professional (or both). As a passive investor, this will be a key starting point in understanding what your tax exposure looks like for 2022. For current MLG investors, you should have received tax estimated on December 31st, 2022. The information provided in this blog is subject to and does not alter any investment agreement with MLG. Capital Gain and Loss: As a real estate investor, 1231 capital gains from property sales are usually one of the bigger highlights from the reporting year. 1231Capital Gains are generated from depreciable property and real property used in a business...
