By Brad Wozny
We have provided both an American and Canadian business
strategy for real estate in this investment tip. Read on..
The IRS has a ď2 Years and a DayĒ rule that can mean money
and above your home based business tax deduction.
This secret alone can mean that your own home can earn you
a million dollars, so this is one real estate business
you donít want to miss.
This IRS rule states you can generate up to $250,000 tax-free
profit on your home, and up to $500,000 (if you are married)
and $250,000 if you are not if you have lived in the home at
least two years and one day out of five years of real estate
This means you can rent your home as part of your real estate
business, get a home based business tax deduction and make up
to $500,000 tax free. As long as you have rented your home for
up to three years, you can take advantage of this great
If you intend to make this claim as well as make a home based
business tax deduction for your business, you need to move
into your real estate if it has been three years since you
lived there Ė but the amount of time you spend living in the
real estate property before and after the rental counts
the 24 month and one day rule.
As long as you have not bought and sold another real estate
property while leasing out property A, this business strategy
can work for you, helping you to make money from both the IRS
and from any home based business tax deduction you qualify
Donít forget to grab any home based business tax deduction you
can Ė you will be taxed some money on your profit, in all
If you need more information a great resource is the IRS
Publication 523 Selling Your Home at www.irs.gov
In Canada this business strategy for real estate is much
Canadians can qualify for a home based business tax deduction
or two for their real estate business, but their capital gains
taxes exceptions are even easier because you are exempt from
such taxes on your main residence.
If you have multiple homes, call a CA to figure out whether
this business strategy will work for you.
Your CA will be able to explain residency qualifications for
you. Again, though, focus on each home based business tax
deduction while also going for the capital gains exemption.
Itís a solid real estate business strategy to spend less on
taxes than you have to in order to expand your profit line.
Thatís one way to make the most of each home based business
Take advantage of $147 in free investing tips showing examples
of other investment techniques and real estate business
strategy for you to profit from.
About The Author: Brad Wozny and his mother generated over $1
Million profits in real estate in 93 days. Their mission to
help 100,000 Women & Families Achieve Financial Freedom. Brad
Mary are endorsed by Mark Victor Hansen, co-Creator of
Soup for the Soul". Click on
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