This is a true story, straight from the IRS. (And if you ever receive a fraudulent 1099, this new article will help you.) The facts of the story… An auto dealer sold a car to a customer. The next day the buyer got a call from the dealer asking him to return to the dealership and change the agreed “no-interest” loan to an interest-bearing loan. The customer obviously said … [Read more...]
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For 199A Tax Deductions, Must Landlords Give 1099s to Vendors?
It’s a fact… The Tax Cuts and Jobs Act gives you a possible 20-percent tax deduction on your rental property. But that’s only if your rental property is a trade or business, and that comes with its own burdens! For example, Section 199A final regulations stipulate that under tax code Section 6041, a trade or business must issue 1099s to certain vendors. So in … [Read more...]
Statutory insurance agent wins the 199A tax deduction
How does the tax code treat a W-2 statutory employee for income tax, payroll tax, business deduction, and Section 199A qualifications? This is the question we’ve been asked by a concerned insurance agent. He wants to know if he’ll qualify for the Section 199A deduction on his W-2 statutory income. He also wants to know how he should handle his net 1099 mutual-fund sales … [Read more...]
3 strategies for avoiding 1099 headaches
Do you use the services of independent contractors? If the answer is “yes,” there are changes in the tax law you need to know about. Now. You see, the IRS has moved up the deadlines for filing W-2s and certain 1099s. And compliance with other new tax rules is more difficult than ever. But don’t worry. We can help by providing you with three winning strategies that can … [Read more...]
2016 tax guide for dealing with a home foreclosure
If you’re facing foreclosure on your home, you probably feel like things can’t get much worse. But they can. You see, the law treats foreclosure as if you sold your home — and you can’t deduct losses on the sale of your personal home. Worse, if the lender sells your home for less than the amount of your mortgage, the lender sends you a 1099-C for cancellation of debt … [Read more...]