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...]
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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...]
Create Extra Cash by Using Depreciable Antiques in Your Business
Looking for an end-of-year tax break that can put big money in your pocket? Buy antiques you can use in your business. Why is this a smart move? Because you can depreciate or even Section 179 expense them. And you can benefit by creating tax-favored, long-term capital gains. That’s right. You can buy a desk, clock, rug, cabinet, bookcase, paperweight, conference table, … [Read more...]
The smart way to turn your home into a rental
Thinking about making some extra cash by turning your home into a rental property? Well, I know just the right buyer for your property … your S corporation! That’s right. When your S corporation operates as the landlord, you’ll come out with more money in your pocket. What’s more, it’s easy to do as you’ll learn when you read my new article titled Tax Tips: Shedding … [Read more...]
Don’t let passive losses destroy your tax-favored capital gains
Do you own rental properties? If you do, I hope they’re producing a nice cash flow for you. But sadly, that doesn’t always happen. Sometimes your rentals produce losses which the IRS classifies as “passive losses” for tax purposes. This is not necessarily terrible because you can deduct those losses against passive income you’ve earned. The rental property losses that … [Read more...]