Thanks to the Tax Cuts and Jobs Act, conducting a cost-segregation study on your rental property can put a lot of money in your pocket. What exactly is cost segregation? How can a cost-segregation study on your real property save you big money? It’s really not that hard, but you have to know the IRS’s rules and follow them carefully. To find out how to put this … [Read more...]
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How to avoid retirement plan and IRA rollover traps
Thinking about rolling over a qualified retirement plan into an IRA? Go right ahead. It’s usually a smart move because a rollover lets you keep deferring taxes on the rolled-over amount. But be careful. If you don’t follow the IRS’s rules, you could wind up in an IRS agent’s office. Want to learn how to handle retirement plan and IRA rollovers the right way? Read my … [Read more...]
Did goodwill take a hit under tax reform?
The Tax Reform and Jobs Act changed the tax treatment of certain self-created intangible property. This leads to an important question. Does tax reform affect goodwill created or acquired in a business? Some say that the value of goodwill, when a business is sold, could now be considered ordinary income. If so, this could create a huge tax-hit for S and C corporation owners … [Read more...]
How to deal with the qualified improvement property snafu
As part of the Tax Cuts and Jobs Act, Congress created the qualified improvement property category. It was intended to let you fully expense qualified property with bonus depreciation. Unfortunately, Congress made a drafting error in the law which means you can’t use bonus depreciation for qualified improvement property. But don’t let that get you down. We’ll explain how … [Read more...]
Tax Time Bomb: Passive Foreign Investment Companies
Thinking about owning a passive foreign investment company (PFIC)? Perhaps through a (non-U.S.-owned) mutual fund? Our advice, in just one word, is… “don’t!” Why? Because the IRS punishes owners of PFICs with high tax-rates and extremely burdensome reporting requirements. You might think that all this doesn’t apply to you, but you may be in for a big, nasty surprise. You … [Read more...]