Yes. The times they are a-changin.’ Sometimes for the better and sometimes for the worse. Here’s an example of a change in the tax law that could cost you big money if you’re not paying attention… The days when you could convert your rental property or vacation home to a principal residence, and then use the full $250,000/$500,000 home-sale exclusion to avoid taxes, are … [Read more...]
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Tax planning for a winter in Florida, a summer in Massachusetts
Want to trade the cold winters up north for the warmth of your tax-deductible sunny Florida home? And in the summer, wouldn’t it be great to move back again to your cooler Massachusetts personal residence? You can do it and deduct your trips between the two locations if you know the tax law. We’ll explain three tax-planning basics that apply to these travels, whether … [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...]
Tax reform attacks home mortgage interest deductions
Sorry to be the bearer of bad news, but here it is… Under the new Tax Cuts and Jobs Act, the home mortgage interest deduction rules did not fare well. And that’s an understatement. The simple fact is, the loss of home mortgage interest deductions means the cost of home ownership will rise a lot. Ouch! We’ll tell you the whole sad story when you read my new article Tax … [Read more...]
The smart way to turn your home into a rental
Thinking about making some extra cash by turning your home into a rental property? Well, I know just the right buyer for your property … your S corporation! That’s right. When your S corporation operates as the landlord, you’ll come out with more money in your pocket. What’s more, it’s easy to do as you’ll learn when you read my new article titled Tax Tips: Shedding … [Read more...]