Prosperl CPA | Accounting Blog

Debt cancellation can help a beleaguered borrower survive but it also can trigger negative tax consequences. Cancellation of Debt (COD) Income Is Taxable. When a lender forgives part or all your debt, it results in “Cancellation of Debt (COD) Income. “ Although the general federal income tax rule is that COD Income counts as gross income that must be reported on your federal income tax return for the year in… Read More

Ultra-High Net Worth Individuals are those who have net worths of at least $30 million of shares in private and public companies, real estate, and personal investments. It’s easy to believe that secret investment strategies lead to such wealth but overall, the actual strategy is knowing how to make money work for you and taking calculated risks. Here are some of those strategies: Have a Strong Savings Strategy in Place…. Read More

How do you know if an investment property will be profitable? Rule Number One is STILL Location, Location, Location. After that, you can apply these rules: The One-Percent Rule The one-percent rule is simply a rule of thumb that investors use to help them narrow down their options quickly and efficiently. All the one-percent rule says is that a property should rent for a minimum of one percent of its total… Read More

High-risk real estate speculating and investing is like walking a tightrope.  It’s not for everyone. If you are a risk-averse person and investor, here are some guidelines to keep you on a more conservative path: Avoid highly volatile real estate. Don’t be lured into recession-prone properties such as hotels, senior housing, and oil/gas properties. Don’t take on too much debt. It’s tempting to borrow against real estate holdings and frequently… Read More

Perhaps you haven’t realized it, but Artificial Intelligence (AI) has already made deep inroads into the world of Real Estate Investment. Don’t reach for your smelling salts, it’s a good thing. Some of the most common uses of AI in the world of the investor are Predictive Analytics, 3D Modeling, Smart Home Devices, and Property Management. When you see an estimate on the value of a property, it’s usually based… Read More

There’s this comparative analogy about what makes something American that people like to use: “as American as apple pie.” But, I kind of think we should update that comparison to “as American as starting a small business.”  Not as catchy, I know (or as yummy). But, it’s just the truth. Small business ownership is the epitome of independence. Don’t want to work for someone else? Don’t want to depend on… Read More