“Houston Real Estate Investors Dream Team” reached #1 on Amazon.com’s Best Seller List in the Real Estate, Buying and Selling Homes and Real Estate Investments categories on Tuesday, June 16, 2015.
The book was compiled from interviews and the experiences of top real estate investing consultants in the Houston, Texas area on the specific and powerful topic of creating a real estate investment business. Each contributing author has spent years helping new and seasoned real estate investors, not just with practical advice on how to have a real estate investing business, but providing actual services so that investors can use their time and money in more practical ways.
Based in Houston, Texas, Michael Plaks is a specialist in real estate transactions and the accounting intricacies involved in the real estate investing world.
Many novice real estate investors, and even some seasoned investors, often do not realize that the IRS makes distinctions between the different facets of real estate investing when it comes to filing taxes at the end of the year.
In this chapter, Plaks explains, “When we talk about bookkeeping and taxes, we are looking at how the IRS distinguishes between two types of real estate businesses. The difficulty is for a new investor to understand this distinction. When we go to a networking event, we introduce ourselves as a ‘real estate investor.’ That implies we’re buying real estate, and we sell it or rent it out. For a businessperson, for an investor, that’s one type of business.
The IRS, however, draws a line and says these are two distinct businesses, not one. One is being a landlord renting property out. Everything else is the other type – a resale type of business, where you buy and sell, including flippers, wholesalers, builders, and all other forms of real estate businesses.”
Plaks points out that it’s important to note the distinction between the two businesses because there are two different Federal forms and two different sets of tax rules that apply to them. Equal amounts of monies and expenses are treated differently depending on which business that property falls into. He provides specific examples for each of these businesses and how the monies are treated.
He also points out that while everyone involved in doing business related to real estate considers themselves to be real estate investors, the definition of an investor does not hold true for some who do transactions such as wholesaling. Those people would actually be a real estate business person or entrepreneur. Technically speaking, an investor is someone who puts their money into something, such as property, and then pulls it out at some point in the future.
Plaks eloquently displays his expertise in the accounting practices for those involved in real estate. He is known to help investors sleep well at night, confident they’ve done everything correctly as far as the IRS is concerned.
For more information about Michael Plaks, visit: http://MichaelPlaks.com
“Houston Real Estate Investors Dream Team” is available in the Amazon Bookstore at http://www.amazon.com/gp/product/B00Z959WQ4.
Ainsley & Allen Publishing
Brian Horn
United States
713-242-1662
media@ainsleyallenpublishing.com
http://MichaelPlaks.com