Operating your business as a partnership can offer real advantages. This is also true for LLCs (treated as partnerships for tax purposes). Why? Because operating your business as a partnership or LLC gives you the right to make “special tax allocations” of tax items among the partners. Read the full article for details What is a special tax allocation? Partners … [Read more...]
Depreciation
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CARES Act Fixes TCJA Glitch on QIP, Requires Action
Definition:Qualified Improvement Property (QIP) Qualified Improvement Property refers to any improvement made by the taxpayer to the interior portion of a building that’s nonresidential real property (like office buildings, retail stores, and shopping centers.) Can you believe it? Congress screwed up… big time. What was the mistake they made that could cost you … [Read more...]
COVID 19: Important Tax Breaks from the CARES Act
___________________________________________________________I hope this issue of the Tax Reduction Letter finds you and your family in good health. Warmest good wishes at this difficult time from all of us at the Bradford Tax Institute.___________________________________________________________ As a response to the terrible COVID-19 pandemic, the government has quickly passed … [Read more...]
If You Don’t Want 100-Percent Depreciation, Elect Out or Else
Want to take advantage of every tax break the law allows? Generally, all you have to do is elect the beneficial treatment on your tax return. Easy. But hang on a second. There’s one exception to beware of. It’s the 100% bonus depreciation deduction. If you don’t want to deduct everything at once,you have to be proactive and elect out! In my new article, we show you … [Read more...]
Congress Reinstates Expired Tax Provisions—Some Back to 2018
This is the story of death and resurrection. No. I’m not talking about religion. I’m talking about some important changes congress made to the tax law. Let me explain… Congress, in its wisdom, left many tax breaks, called “extenders,” to expire on December 31, 2017. This means the extenders were killed for all of 2018. Ouch! Then the resurrection took place. … [Read more...]