Mike Blanski is our Certified Public Accountant member. Mike’s firm does taxes, accounting and consulting services. They offer tax planning ideas for sole proprietors and business owners.
Mike followed on Arlyn’s talk and discussed ideas on handling the profit that results from selling real estate. Investment property can be tax deferred by a process known as exchange where a “like” property is purchased with the profits of the sale. Mike also discussed the issue of repairs (which can be deducted as an expense in the year it occurs) vs. capital improvements (which can be depreciated). The issue is what items that are done to a property fit into which category for tax purposes. Mike stated that the Safe Harbor limit has increased from $500 to $2500 recently.
Mike then fielded questions from the PRO members who asked about investment property. Remember Mike Blanski and Graff, Ballauer & Blanski when you hear your associates mention that they are looking for the services of a certified public accounting firm.