Sure, The Tax Cuts and Jobs Act (TCJA) has hurt small business owners in several ways. But the TCJA has also provided some significant tax savings, one of which we want to highlight now. The good news is that tax reform has added two new provisions that now allow you to claim bonus depreciation on the purchase of a vehicle you’re leasing. Want to learn how to take … [Read more...]
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Roth IRA After Tax Reform: The Backdoor Is Still Open
Do you believe that you’re ineligible for a Roth IRA because your income exceeds certain limits set by the IRS? Well, I’m happy to tell you that you’re mistaken. The fact is, if you know how to play the game, you definitely can open a “backdoor” Roth IRA, easily and legally. And doing so is a smart move. That’s because the Roth IRA is a great way to grow your wealth with … [Read more...]
Caution: 199A Calculator Is Business-by-Business WITHOUT Aggregation
Consider this a personal invitation to use our freeSection 199A Calculator But be sure to use it the correct way! Your 199A deduction requires W-2 wages and/or property (when your taxable income is greater than $415,000 married, filing jointly, or $207,500, filing as single or head of household.) If you earn above these amounts and do not formally elect aggregation of … [Read more...]
Good News: Most Rentals Likely Qualify as Section 199A Businesses
As you probably know by now (and definitely know if you’re a regular reader of The Tax Reduction Letter), tax reform added tax code Section 199A. This new section created a new 20-percent tax deduction possibility for you if your rental property has profits and can qualify as a trade or business. Which means that if your rental property satisfies the above two conditions, … [Read more...]
What Can I Do If My K-1 Omits 199A Information?
Your tax reform’s 199A deduction doesn’t arrive on a silver platter compliments of the IRS. No. You have to calculate the deduction yourself, and to do so you need to receive complete and accurate K-1 information. But what happens if the pass-through entity doesn’t provide the complete, necessary information you require? (And by the way, this happens far more often than … [Read more...]