Are you eligible for a Section 199A 20-percent tax deduction? When you start to answer the question, don’t forget about your capital gains. Why? Because they add to your taxable income which is the key to determining your qualification for some, all, or none of the 199A deduction. Don’t miss this opportunity to find out if a hefty tax deduction is coming your way. Read … [Read more...]
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Did goodwill take a hit under tax reform?
The Tax Reform and Jobs Act changed the tax treatment of certain self-created intangible property. This leads to an important question. Does tax reform affect goodwill created or acquired in a business? Some say that the value of goodwill, when a business is sold, could now be considered ordinary income. If so, this could create a huge tax-hit for S and C corporation owners … [Read more...]
Tax Reform: Wow, New 20 Percent Deduction for Business Income
Here’s some really good news and it’s a big deal… Section 199A of the new tax code lets you claim a deduction against your IRS 1040 taxable income of up to 20% of your qualified business income. Yes. These new rules can really put big money in your pocket. Which is why I urge you to read my new article titled Tax Tips: Tax Reform: Wow, New 20 Percent Deduction for Business … [Read more...]
Will Section 199A Phase In or Phase Out Your 20 Percent Deduction?
Are you running a “pass-through” business like a proprietorship, S corporation, or partnership? Is it an “in-favor” business? If you’re answering “yes,” you qualify for tax reform’s new 20% deduction on qualified business income. (This is true whether you’re above, below, or in the expanded wage and property phase-in range.) BUT… if your business is an IRS-defined … [Read more...]
Are Your Rental Properties a “business” or investment” for tax purposes? Big difference.
If you own rental properties, you don’t want the IRS to classify them as an “investment.” Nope. You want those properties to qualify as a “trade” or “business.” Why? Because if your properties are treated as such, and reported on Schedule E, you can enjoy from some major tax breaks. You’ll get the whole story when you read my article titled Tax Tips: Are Your Rental … [Read more...]