2018 is the first year you need to do year-end Section 199A tax planning. And if you fail to plan, there are consequences. Big consequences. For starters, you could miss out on the huge 20-percent deduction you may be entitled to. Ouch! But don’t worry. It’s not too late to bring your Section 199A deduction back to life. The first thing you need to do is take a minute … [Read more...]
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Drive-time increases odds of deducting rental-property losses
It’s a fact … Your rental properties can provide a valuable tax shelter when you deduct your rental losses against other income. One important step to take if you want to deduct your losses is to pass the tax code’s 750-hour test. It’s one of the ways taxpayers get to prove that they are real-estate professionals. (See more about this below.) Looking for ways to accrue … [Read more...]
TCJA: Convert Personal Vehicle to Business and Deduct up to 100%
Now is the time to convert! Not your religion. Your vehicle. You see, thanks to the Tax Cuts and Jobs Act, when you convert your personal vehicle to a business vehicle, you could save a lot of money. In fact, upon conversion, you can instantly qualify for a 100-percent deduction on the fair market value of your personal vehicle. Want to find out more about how to use … [Read more...]
How to survive a business-mileage audit
IRS auditors are human. (Despite what you may think.) This means that auditors aren’t always familiar with every nuance of the tax code and so occasionally get things wrong. For example, you may be keeping a 90-day mileage log, but your IRS auditor may disallow all of your auto expenses because you can’t provide a 12-month mileage log. And the IRS auditor would be be … [Read more...]
Warning: Your “personal home” is not your “tax home”
“Home sweet home.” Sounds lovely doesn’t it? But if you’re not careful, Uncle Sam can turn things sour, fast. You see, the IRS makes a crucial distinction between your “personal home” and your “tax home.” And if you don’t know the difference between the two, and handle things the wrong way, you could lose valuable business-vehicle deductions. Want to make sure you stay … [Read more...]