Want to save on your tax bill when you buy a rental property? Then pay close attention to the closing statement. If you’re smart, you’ll go over the statement’s line items and assign each to one of three categories… Business Loan acquisition Operations Then you’ll be in a position to consider the best tax strategy for each category. Want to learn how to use … [Read more...]
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How a new IRS rule allows property owners retroactive deductions for prior year property fix ups
Attention property owners! This year only, the IRS will let you take extra deductions for certain renovations you made to your business or rental property in prior years! That’s right. The new law gifts you retroactive tax benefits (also known as cash)! EXAMPLE: Say you made major repairs on your property some years ago at a cost of $50,000. Thanks to the new rules, the IRS … [Read more...]
The surprising “Case of The Built-in Desk”
A little while ago I was asked an interesting (if arcane) question by a long-time reader of the Tax Reduction Letter. The gentleman who wrote me recently installed a built-in desk in his home office. He also had a built-in desk installed in a personal (non-business) part of his home. His question? How should he treat the two built-in desks for tax purposes? You’ll hear … [Read more...]
Last call! Huge deductions for landlords and tenants
If you’re a commercial landlord or tenant, here’s important advice: Consider making and placing in service “qualified leasehold improvements” before midnight, December 31, 2013. That’s right. The IRS is offering some really big tax deductions if you make approved improvements by the end of this year. Time is running out so you should consider getting started soon! Want to … [Read more...]
Watch out for the “true lease” trap!
You may think that you just bought a new vehicle. Or that you leased a vehicle from your local dealer. But you better be sure that the IRS agrees with you. You see, if the IRS finds that your lease is not technically a “true lease,” or that your purchase is not technically a purchase, you could owe additional taxes and big penalties. Don’t fall into this all-too-common … [Read more...]