J.K. Lasser's Real Estate Investor's Tax Edge: Top Secret Strategies of Millionaires Exposed -- Contents -- Warning -- Introduction -- Chapter 1: Understanding Capital Gains -- What Is a Capital Asset? -- Capital Gains Tax Rates -- Holding Periods for Capital Assets -- Multiple Holding Periods -- What Is "Basis"? -- Settlement, Closing, or Housing and Urban Development (HUD) Costs -- Sales of Business Property (Noncapital Property) -- Cancellation of Debt -- Conclusion -- Chapter 2: Your Personal Residence -- Home Mortgage Interest Tax Rules -- Real Estate Taxes -- Exceptions to the Two-Year Rule -- How to Compute Reduced Capital Gain Exclusion -- Vacant Land -- Converting Rental Property to Your Personal Residence -- The Home Office and Exclusion of Capital Gains -- Sale of a Home in the Year of Divorce -- Unmarried Couples and the Exclusion -- Sale of a Home in the Year of Death of One Homeowner/Spouse -- Incapacity -- First-Time Homebuyer Credit -- Loss on the Sale of a Personal Residence -- Tax-Free Rental Income -- Foreclosure of Primary Residence -- Conclusion -- Chapter 3: Deductions for Rental Property -- What Is Rental Income? -- Common Rental Property Tax Deductions -- The Real Estate Professional and Rental Property Losses -- Tax Credits for Rental Properties -- Recordkeeping Requirements for Rental Properties -- Conclusion -- Chapter 4: Like-Kind Exchanges and Section 1031 -- Simultaneous Exchanges -- Deferred (Nonsimultaneous) Exchanges -- The Identification Period -- Reverse (Starker) Exchanges -- How to Permanently Eliminate the Gain on the Transfer of Property Through a Like-Kind Exchange -- Losses -- Real Estate Dealers -- Business Entities -- Tenant-in-Common Interests and Like-Kind Exchanges -- Last-Minute or Broken Exchanges -- Related-Party Issues -- Basis of Property Received -- Refinancing -- Sale Expenses.

When Not to Use a Like-Kind Exchange -- Conclusion -- Chapter 5: The Dealer Issue -- What Is a Dealer? -- Tax Consequences of Being a Dealer -- Tax Planning Strategies -- Conclusion -- Chapter 6: Installment Sales -- What Is an Installment Sale? -- Installment Sales Between Related Parties -- Opting Out of Installment Sale Reporting -- Installment Sale of Your Primary Residence -- Use of Escrow Account for an Installment Sale -- Considerations Related to Installment Sales -- Default Under Installment Agreements -- Conclusion -- Chapter 7: Passive Activity Rules Related to Real Estate -- Participation -- Modified Adjusted Gross Limitation -- Former Passive Activities -- At-Risk Limitations -- Dispositions and Installment Sales -- Conclusion -- Chapter 8: Trusts, Trusts, Trusts! -- Land Trusts -- Private Annuity Trusts -- Charitable Remainder Trusts -- Conclusion -- Chapter 9: Individual Retirement Accounts -- IRA Rules and Plan Types -- Necessary Steps to Using an IRA for Real Estate Transactions -- Buying Notes or Liens in an IRA -- Prohibited Transactions with Real Estate in an Individual Retirement Account -- The Use of Financing in an IRA -- Conclusion -- Chapter 10: Depreciation Issues with Real Estate -- How Is Basis Computed? -- What Is the Recovery Period for Property Subject to Depreciation? -- What Methods of Depreciation Are Available? -- Depreciation Rates for New Property -- Component Depreciation -- Section 179 Deductions -- Must Depreciation Be Claimed? -- Conclusion -- Chapter 11: Business Entities and Real Estate Investors -- The C Corporation -- The S Corporation -- The Limited Liability Company (LLC) -- The Limited Partnership -- Conclusion -- Conclusion -- Appendix A: IRS Tax Forms -- Appendix B: Checklists and Forms -- Rental Expenses Checklist -- Identification Form -- Notes -- About the Authors -- Index.