Do you own a vacant lot or other unproductive land? If the answer is “yes,” it’s very likely you’ll need new strategies for tax years 2018 through 2025. You might even need to consider making different investments! Why? Because the Tax Cuts and Jobs Act (TCJA) has impacted every cost you incur to carry that vacant lot or unproductive land investment. Want to understand … [Read more...]
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Know These Divorce-Related Tax Issues for Small-Business Owners
Are you going through a divorce or thinking about ending your marriage? If you are, I urge you to consider the important tax consequence you’ll face. Thanks to the Tax Cuts and Jobs Act (TCJA), those consequences have changed for tax-years 2018 and later. As a small business owner, what do you need to know in order to emerge from a divorce with the most favorable tax … [Read more...]
2019 Last-Minute Year-End Tax Strategies for Your Stock Portfolio
Here’s good news if you own a stock portfolio. (And if you’re a reader of the Tax Reduction Letter, I’ll bet you do.) If you know how to play the game, you can turn your stock portfolio into a year-end tax-reducing machine. The basics are really pretty straightforward. Avoid the high taxes (up to 40.8%) on short-term capital gains and ordinary income.Lower the taxes to … [Read more...]
Pay Zero Capital Gains Taxes on Sale of Small C Corporation!
Consider this… Let’s say you sell your business and the sale produces a $5-million capital gain. How much federal tax will you need to pay? The surprising answer is … zero! … not a penny. How can you get this terrific deal? Here’s the answer … operate your business as a tax-code-defined “qualified small business corporation” (QSBC). More good news. The Tax Cuts and Jobs … [Read more...]
Personal Use of Your Rental Triggers Ugly Vacation-Home Rules
Sole use dwellings: If you own a vacation home that only you use, your tax situation is pretty straightforward. Rental dwellings: If you rent a dwelling to a tenant who lives there exclusively, you’re also in good shape. Dual use: When you use the dwelling for both personal and rental use, you create the possibility of tax-free rent, rental property deductions, and extra … [Read more...]