Business Times of Edmond, Oklahoma February 2020 - Page 25
are more expensive to operate. Renter
turnover and unit damage can be greater —
especially in a college town. But with many
units at higher rental rates, your income
can be enhanced. After you understand
what’s involved, it may be sensible to hire a
property manager to free up your time. As
for income taxes, each year you report your
rental receipts, minus your rental expenses,
less depreciation. Residential real property
is depreciated using a 27.5-year life.
House flipping — Many people have
the talent and time to buy a home (on the
cheap) that needs significant modernization
and sell it quickly for a short-term gain — as
seen on TV. House flipping is risky. If you
take this on, be ready to part with your
cash if things don’t line up as planned.
Taxwise, house flipping is generally treated
as a purchase and sale of a capital asset
with any profit reported as a short-term
capital gain if held less than one year.
Any short-term loss would be netted with
other capital gains and total losses limited
overall to $3,000 and the excess carried
forward for 20 years. If a flipper holds their
project for more than a year, lower capital
gain rates would apply. House flipping
gets more taxing and complicated if the
flipper’s hours exceed 500 during any year.
Commercial rental property — The
commitment to managing commercial
property is like residential rental except
that businesses will usually pay more for
rent. As such, commercial rental provides
more cash to pay property managers,
rental agents and improvements which
can be built into the rental agreements.
Commercial property will generally be a
larger investment. For tax purposes, non-
residential property is depreciated over 39
If I didn’t mention your favorite real
estate investment method, please forgive
me since I just listed the ones that I see
most. Know that there are other ways to
Above all, I believe that real estate
offers much opportunity to the individual
investor. It’s just a matter of finding what
works best for you.
JIM DENTON is the managing partner
of Arledge & Associates, PC where he is
responsible for providing leadership to the
CPA and Wealth Management firm, Summit
Capital Advisors, LLC. Mr. Denton empowers
his clients, so they may live their best life. He
may be reached via email at email@example.com.
Securities offered through Avantax
Investment Services SM , Member FINRA, SIPC.
Investment advisory services offered through
Avantax Advisory Services SM , Insurance services
offered through an Avantax affiliated insurance
PHOTOS PROVIDED | EDMOND AREA CHAMBER OF COMMERCE
RIBBON CUTTING AT PREVAIL STRENGTH AND FITNESS
Prevail Strength and Fitness recently held a ribbon cutting
with the Edmond Area Chamber of Commerce to introduce the
gym to the community. Prevail Strength and fitness is a small
group and personal training studio that helps busy professionals
find their strength and confidence in and outside the gym so that
they can elevate their career and enjoy adventure. Their goal is
to teach students how to approach strength and nutrition in a
holistic approach that elevates all aspects of their life instead of
consuming it. “We love our pull ups just as much as our tacos.
We believe in quality over quantity and aim to give the individual
the best experience while being a part of a group of like-minded
individuals,” said owner Sean Shearon. For more information, visit
NEUROWELLNESS CELEBRATING GRAND OPENING
NeuroWellness Clinic recently held a ribbon cutting with the
Edmond Area Chamber of Commerce to celebrate their grand
opening at 178th and Portland Avenue. NeuroWellness provides
diagnosis, treatment and neurological research for a variety of
conditions including Alzheimer’s disease, Opioid dependence,
Epilepsy, chronic pain, migraines and more. With more than 25
years of experience, Director Kent Smalley, MD, leads the clinic.
For more information, visit www.tellaneurodoc.com.
February 2020 | The Business Times