Do you have an asset that’s owned by your business that you want to convert to personal use? Maybe a car, a computer, office furniture, or something else of value? If the answer is “Yes,” be careful. VERY careful. You see, when you make a conversion like that, you first could face some recapture and then, after that, the business asset retains its business attributes. Which … [Read more...]
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Don’t fear home-office depreciation recapture
Who’s afraid of the big bad home-office deduction? You shouldn’t be. Especially if what’s worrying you is depreciation recapture when you sell the home where your home-office is located. The truth is, there’s no reason to fear depreciation recapture when you claim a valid home-office deduction. You see, the simple fact is, depreciation tax benefits typically exceed … [Read more...]
Beware When Converting a Rental to Your Principal Residence
Thinking about converting your rental property or vacation home to a principal residence? Hoping to take advantage of the $250,000/$500,000 exclusion when you do? Then “caution” is the watchword. You see, the tax laws have changed and how you handle the conversion process can have a huge impact on how much you pay Uncle Sam. You’ll get all the facts when you read my new … [Read more...]
Avoid taxes on the sale of a home with an office
If you’re claiming the home-office deduction and are planning to sell your home, I’ve got good news for you. Thanks to the principal-residence tax-free exclusion and the “1031 exchange” you can avoid taxes on the sale of your home. What’s more, you can enhance your deductions on your replacement home! Want to get the whole story? Check out my new article titled Tax … [Read more...]
The truth about foreclosures, short sales, and modifications
I sure hope your home isn’t “under water” and that paying your mortgage isn’t a problem. But if you have a relative, friend, or client who is facing difficulties, my new article makes “must” reading. You see, I’ll explain in easy-to-understand language how the tax law treats the foreclosure, short sale, or loan modification on a principal residence. An unpleasant subject? … [Read more...]