As you probably know, residential real estate prices are way up in many parts of the country. Rental rates are also very high. That’s why you should consider buying a new residence and converting your current residence into a rental property. Why make this move? Because you can very possibly sell your rental property down the road for a much higher price! But … [Read more...]
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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...]
No business Income. No Home-Office Deduction. Wrong!
If you had no taxable income in 2018, you might think you can’t claim the home-office deduction. That would be a big mistake. Why? Because even if you didn’t earn a nickel of taxable income, your home office can produce three significant tax benefits for you. We’ll tell you what they are and how to take advantage of these totally-legal tax breaks when you read my new … [Read more...]
Tax reform creates huge hazards when you loan money to your corporation
Making loans to your corporation became a lot more hazardous back in 1986 thanks to the Tax Reform Act passed that year. But you ain’t seen nothin’ yet… The new Tax Cuts and Jobs Act makes things far worse for tax-years 2018 through 2025! We’ll tell you exactly what lawmakers did when you read my new article titled Tax Tips: TCJA Tax Reform Creates Big Hazard in Loans to … [Read more...]
Tax reform sticks it to business startups that lose money
There’s a provision in the Tax Cuts and Jobs Act that we believe is terribly unfair to business start-ups and struggling business owners. You see, the rule prevents you from using all your business losses against non-business income if the losses are considered to be too large. (That determination is made by Congress.) If you want to find out how this onerous new law can … [Read more...]