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...]
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Tax reform expands your Section 179 deduction privilege
If you’re a regular reader of the Tax Reduction Letter, you know that the Tax Cut and Jobs Act can cause you some real pain. But in this article, we have good news — and here it is … Thanks to tax reform, you now have a more favorable and permanent Section 179 deduction for qualified assets placed in service starting in 2018. In fact, the new, improved Section 179 … [Read more...]
Tax Reform Does Much to Help Your Rental Real Estate
Do you own commercial and/or residential rental property? If you do, the recent Tax Cuts and Jobs Act provides some extremely nice benefits for you. For starters, qualified businesses income from your rental creates a possible twenty-percent tax deduction… and without any effort on your part. Plus, if you want to earn taxable income, the new law gives you enhanced bonus … [Read more...]
Tax-Smart Ways to Cash Out of your Real Estate Property
Yes. Section 1031 exchanges are a great way to avoid taxes when you’re acquiring bigger and better properties. But be aware! When the time comes to cash out, 1031 should not be used. What’s the best way to avoid taxes and keep cash in your pocket? There are three proven strategies you can take advantage of as you’ll learn when you read my new article titled Tax … [Read more...]
How to avoid partnership tax filings
Yes. With partnerships come problems. For example, if you own an unincorporated business, you likely have a partnership for financial tax purposes. Which means you have to deal with extra tax-return filings and compliance headaches. But there is some good news. You see, there are two “elections” you can make to avoid partnership treatment and many jointly owned rental … [Read more...]