Find Real Estate Agents and Homes for Sale


Real Estate News --> Hawaii News

Senate agrees to the House version of rail funding bill with an amendment


Hawaii has one of the toughest drug paraphernalia possession ... President Trump, protecting South Korea is not a real estate deal President Trump, protecting South Korea is not a real estate deal In President Donald Trump's book "The Art of the Deal ...


Archived Story

Originally published Saturday, March 24, 2012 at 8:01 PM Share:           (function(d, s, id) { var js, fjs = d.getElementsByTagName(s)[0]; if (d.getElementById(id)) {return;} js = d.createElement(s); js.id = id; js.src = "//connect.facebook.net/en_US/all.js#appId=279558868722586&xfbml=1"; fjs.parentNode.insertBefore(js, fjs); }(document, 'script', 'facebook-jssdk')); Comments ((0)) E-mail article Print Scott Burns: Income trumps deductions Columnist Scott Burns answers a question from a would-be real-estate agent. By Scott Burns Syndicated columnist Related Comments No comments have been posted to this article Q: I've wanted to be a real-estate agent for more than 20 yearsI would like to open a home office and take every tax deduction possible for it after I start working. Do I set up the office before or after I get my license? I would also like to lease a luxury car for the business. I plan to sell and lease houses for clients, and buy houses for rentals for myselfI would then manage these properties. I would like to start with one house in the $120,000 to $175,000 range because that is all I can afford to invest now. My husband and I are retired and own two housesOne of them is a rental and is paid in full, while our main residence has a $350,000 mortgage at 4.25 percent. Our cars are 3 and 4 years old, also paid in fullWe owe less than $1,000 in credit-card debtI usually pay the bill in full every month. I would rather invest part of our savings this way rather than leaving the money in the bank to earn 50 cents in interest. What do you think of my plan? A: I worry when I get letters from people who think about deductions first and income laterIt's often a sign that they are focused on the wrong thing, having forgotten that generating income is the primary goal of work. If you talk to an active real-estate agent, you'll find that many of them own nice cars so they, and their clients, can be comfortableThey will also tell you that they spend a good portion of their conscious life in that car, so depreciating it and deducting its expenses isn't a "freebie" — it's a necessary cost of doing business. Deducting a home office is also less of a free lunch than it seemsMany people forget they will have to pay taxes on the depreciation they took when they sell the house because their home office doesn't get the free pass in terms of appreciation that their residence does. You can understand this by visiting with your accountant and measuring the deductions you already have for mortgage interest and real-estate taxes against the deductions you might gain for office depreciation and a percentage of your utility bills. Many readers are thinking that owning rental real estate is a better use for their money than the yields being offered by banks and the U.STreasuryA number have written to tell me about turning $150,000 of cash earning nothing into a rental property that nets them 5 percent. When you do that, the expenses you incur in active management to earn that return are deductible as part of your ongoing real-estate businessThe only hitch is that some of the time you spend will be real work, so the true return on your investment will be lower. Questions: scott@scottburns.com --> var ST_permalink=""; if (! ST_permalink) { var ST_host=window.location.hostname.replace(/^[cyan|dev|stage|qa]+\./,""); if (ST_host.match(/^seattletimes/)) { ST_permalink=window.location.protocol+"//"+ST_host+window.location.pathname; } } if (ST_permalink) { var OutbrainPermaLink=ST_permalink; var OB_Template="seattletimes"; var OB_demoMode=false; var OBITm="1242404965367"; var OB_langJS='http://widgets.outbrain.com/lang_en.js'; if ( typeof(OB_Script)!='undefined' ) OutbrainStart(); else { var OB_Script=true; var str=''; document.write(str); } } 2) && (str.indexOf("@") > 0); } function isValidPost(post){ var valid_email = isValidEmail(post.email.value) if (!valid_email){ post.email.style.border = '2px solid #C00'; if (post.hasError) { post.removeChild(post.hasError); } var error_paragraph = document.createElement('p'); error_paragraph.style.color = '#C00'; error_paragraph.name = 'invalid_email'; error_paragraph.appendChild(document.createTextNode("We're sorry, but this does not appear to be a valid e-mail addressPlease re-enter.")); post.appendChild(error_paragraph); post.hasError = error_paragraph; } return valid_email; } --> #socialemail { width:632px; } .socialbox { width:142px; float:left; margin:0px 0px 0px 0px; } .verticalline { border-right:1px solid #ccc; margin-top:10px; height:105px; float:left; } .socialiconslist{ list-style:none; margin:0px; padding:4px 0 0px 5px; width:142px; border:0px; text-decoration:none; font-size:12px; } ul.socialiconslist li.facebook, li.twitter, li.phone, li.delivery { padding:3px 0px 0px 25px; margin:4px 0px 0px 0px; vertical-align:middle; height:20px; text-decoration:none; } ul.socialiconslist li.facebook { background:url(http://seattletimes.nwsource.com/art/ui/1024/facebook.gif) no-repeat; } ul.socialiconslist li.twitter { background:url(http://seattletimes.nwsource.com/art/ui/1024/twitter.gif) no-repeat; } ul.socialiconslist li.phone { background:url(http://seattletimes.nwsource.com/art/ui/1024/phone.gif) no-repeat; } ul.socialiconslist li.delivery { background:url(http://seattletimes.nwsource.com/art/ui/1024/delivery.gif) no-repeat; } hr.solid { border: 1px solid #ccc; margin:10px 0; width: 632px; } #email_signup { float:left; padding-bottom:10px; margin: 0px 0px 20px 10px; position: relative; } #email_signup img { width: 53px; float: left; margin: 5px 20px 0 10px; } #email_signup .signup_form { width: 370px; float:right; margin-top:12px; } #email_signup .signup_form h3 { font-size: 16px; /*line-height: 16px;*/ margin: 0 0 5px 0; } #email_signup .signup_form p { font-size: 11px; line-height: 15px; color: #666; margin: 0 0 5px 0; width: 380px; } #email_signup .signup_form .email_input { width: 200px; float: left; height: 22px; padding: 0 0 0 5px; font-size: 13px; color: #999; margin: 0 10px 0 0; } #email_signup .signup_form .email_input:focus { color: #000; background-color: lightyellow; color: #000; } #email_signup .signup_form .email_submit { display: block; float: left; background: url(http://seattletimes.nwsource.com/art/ui/1024/email_subscribe_button.jpg) no-repeat 0 0; width: 64px; height: 21px; margin: 2px 0 0 0; padding: 0; border: 0; cursor: pointer; } #email_signup #meta_links { position: absolute; top: -21px; right: 0px; font-size: 11px; } #email_signup #meta_links a { float: left; } #email_signup #meta_links span { float: left; padding-right: 5px; border-right: 1px solid #b9b9b9; margin-right: 5px; } #email_signup .error p.error_message { color: #bd181c; float: left; width: 200px; margin: 10px 0 0 0; } #email_signup .error .email_input { border: 1px solid #bd181c; color: #bd181c; } #email_signup .error .email_input:focus { color: #000; } News where, when and how you want it On Facebook On Twitter On your phone On your doorstep Business Digest E-mail The latest business headlines from the Northwest and beyondSent daily. (Sample) All newsletters Privacy statement Relive the magic Shop for unique souvenirs highlighting great sports moments in Seattle history. NDN Video Special report Ocean acidification threatens to scramble marine life on an unfathomable scale The Seattle Times Store Shop The Seattle Times Store for books, videos, keepsake pages and other unique gifts Explore: Enjoy the best of our region's Food & Wine Site Map Home Local Nation/World Business/Tech Sports Entertainment Living Travel Opinion Obituaries Extras Forums Contact/Help Site feedback/questions Frequently asked questions Home delivery issues Send us news tips Send letters to the editor Submit event listings Request

Trending Hawaii News:


  • The Twilight Zone of Home Staging
  • SURVEILLANCE VIDEO: Captures 16-year-old Stowaway Stepping Onto Tarmac From Wheel Well
  • Panda Express owners buy Waikiki high-rise office tower
  • PBN's commercial real estate roundtable
  • Is There a One Stop for Real Estate Photographer Insurance?
  • Local Real Estate Resembles but doesn’t Replicate National Real Estate Markets
  • Twin Trees Land Company, Premier Power Enable Leed-Certified Real Estate Services in Sacramento
  • Real American princess fights for her island kingdom
  • Real Estate: Property Taxes in US on the Rise
  • 35 Hawaii Legislators have a Second Job
  • Re/Max promotes Adam Contos to co-CEO
  • Condo Sales Continue to Drive Howard Hughes Corp's Results
  • A Rising Star in Hawaiian Real Estate: Timbers Kauai Ocean Club and Residences
  • State Data Book updated, on DBEDT website
  • Bali Hai Realty on Kauai First Broker to Launch Mobile Website with Real-Time Information
  • Hawaii Island Realtor is Co-Chair of Annual Kona Christmas Parade
  • Ellison to gain Hawaii utilities
  • Kona Village Resort to reopen more than 5 years after tsunami
  • FinCEN Issues New Geographic Targeting Order for Shell Companies Purchasing High-End Residential Real Estate
  • Connecting Adventurers, Travelers And Homebuyers Through A Mobile App?