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...]
Investments
Sorted by Date
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...]
Beware: IRS Error in Rental-Property Deduction Publication
Nobody’s perfect. And that’s certainly true of the IRS. But let me be specific about how this hallowed institution messed up… The IRS publication on rental properties contains a serious error. It states that you may not deduct your premiums on mortgage insurance expenses. This is flat-out wrong and we’ll tell you why when you read my new article titled Tax Tips: Beware: … [Read more...]
When Renting to a C Corporation Creates QBI
There’s one section of the tax code that can save you a lot of money. I’m talking about Section 199A. It lets you claim a valuable 20-percent qualified-business-income (QBI) deduction when you rent an office or other building to your personally owned C corporation. But of course, since we’re dealing with the IRS, the devil is in the details. We’ll help you understand … [Read more...]
How to Handle Multiple Rental Activities and the 199A Deduction
Do you engage in multiple rental property activities? If you do, you’ll find that applying the Section 199A deduction can be complicated indeed. That’s why it’s so important for you to read this new edition of the Tax Reduction Letter. You see, we’ll explain the issues you need to consider if you own multiple properties that can generate the valuable new … [Read more...]