Real Estate Owners Should Plan Now Before Tax Breaks Expire

Real Estate Owners Should Plan Now Before Tax Breaks Expire

Few can say that the U.S. income tax code is easy to navigate. To complicate matters further, taxpayers need to plan ahead to take advantage of recently enacted tax breaks that are scheduled to sunset at some point between now and December 31, 2010.

Below are some of the current tax savings opportunities set to expire soon, starting with those scheduled to expire at the end of 2007.

Energy Efficient Expenditures: Last year’s Tax Act provides incentives for people who make energy efficient improvements to their homes or commercial buildings. Plus, manufacturers of energy efficient appliances get a tax credit for each unit produced, so consumers should ensure that this tax break is passed along to them with each qualifying purchase made. Most of these energy efficient tax breaks end on December 31, 2007.

$2,000 Credit for Contractors: During 2006 and 2007, homeowners who purchase a newly constructed energy efficient home, or have their home substantially rehabbed to become more energy efficient, need to be aware that the contractor is eligible for a $2,000 tax credit from the IRS....