Looking for new ways to save money on your tax bill? Consider this… If you’re thinking of converting your primary residence into a rental property, you could be stuck with your old cost basis and have to pay a lot of tax. However, if you sell your home to your S corporation, you’ll have a new, stepped-up basis for depreciation when you rent to a third party through your … [Read more...]
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How to get multiple home-office deductions
Did you know that if you follow IRS rules, you can claim: A tax-deductible office downtown A tax-deductible office in your own home Plus a tax-deductible office in your vacation home! That’s right. The law allows you to deduct multiple offices if you meet certain requirements. What are they? You’ll find out when you read my new, information-packed article titled Tax … [Read more...]
How to use estate tax rules to avoid income tax
Want to create a tax-shelter that eliminates capital gains, recapture taxes, and gives your heirs a nice tax break? All you have to do is die. Oh, I know you may not want to rush to take advantage of this extreme tax strategy but you should know that keeping your home until death has distinct advantages. At death, your estate avoids both capital gains and recapture taxes, … [Read more...]
Create tax-free income for your parents and you
You probably know that you can deduct business lodging travel costs. What you might not know is that you can turn that deduction into tax-free income for your mom and dad. (Or for other relatives or friends for that matter.) How? By paying them rent for your business stays. And that’s not all. You can deduct the business part of the “rent” you pay. Nice, huh? If you’re … [Read more...]
Bank foreclosure auction
A foreclosure is always a sad event. But did you know that when the bank forecloses on a home, tax law comes into play in some surprising and often beneficial ways… especially this year? The fact is, tax law treats recourse and nonrecourse mortgages in completely different ways. If you want to learn how tax law treats recourse and nonrecourse home mortgages in a foreclosure, … [Read more...]