If you have a stock portfolio, this issue of the Tax Reduction Letter makes must reading. Why? Because it explains how you can turn your portfolio into a year-end tax reduction machine. That’s right. If you know how to play the game, you can use IRS rules to dramatically slash your tax bill. And best of all, it’s easy to do. Sound good? It is good as you’ll learn when … [Read more...]
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Defining “real estate investor” and “real estate dealer”
Here’s a good news double header… Good news #1: You can be both a real estate investor and a real estate dealer with respect to your real estate portfolio. This puts you where you want to be. In control. Good news #2: By knowing just a few rules about dealer/investor classifications, you can dramatically increase your net worth. Want to find out more? Read my new article … [Read more...]
Deductions for defunct S corporation expenses
Let’s say you closed your S corporation in 2016. Let’s also assume that you incurred unexpected expenses from your defunct S corporation in 2017 and 2018. Finally, let’s stipulate that you personally paid for them as the S corporation’s president and sole shareholder. Now comes the big question… Can you deduct those expenses? Now comes the big answer… Nope. You’re out … [Read more...]
Tax reform hammers personal casualty loss deductions
Hurricanes. Floods. Wildfires. These and other disasters have sadly cost many lives and billions of dollars in property damage. If you have suffered property damage, we want to warn you that the Tax Cuts and Jobs Act placed a new limit on personal casualty loss deductions for the years 2018 to 2025. The changes in the law can have a huge impact on your ability to deduct … [Read more...]
Drive-time increases odds of deducting rental-property losses
It’s a fact … Your rental properties can provide a valuable tax shelter when you deduct your rental losses against other income. One important step to take if you want to deduct your losses is to pass the tax code’s 750-hour test. It’s one of the ways taxpayers get to prove that they are real-estate professionals. (See more about this below.) Looking for ways to accrue … [Read more...]