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...]
Losses
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Five strategies for dealing with a business loss
Tax reform provided some real benefits for small-business owners. But the changes lawmakers made to the net operating loss (NOL) deduction rules can take a lot of money from your pocket. You see, before tax reform you could carry back the NOL to prior tax years and get refunds of taxes paid in those years. Or, you could have elected to wave the NOL carryback and, instead, … [Read more...]
Tax reform’s effect on partnerships and LLCs
The Tax Cuts and Jobs Act made a number of changes that affect multi-member partnerships and LLCs. Most of these changes will put a smile on your face, but a few may cause some frowns. How will your business fare under the new law? We’ll tell you the good, the bad, and the ugly when you read my new article titled Tax Tips: TCJA Changes Affecting Partnerships and LLCs and … [Read more...]
Don’t let business losses make you an IRS target
It’s a fact… The tax law has always treated your hobby activities unfairly. Now, tax reform under the Tax Cuts and Jobs Act has made things even worse. You see, thanks to this new legislation, you’re prevented from deducting any business expenses against hobby income. That’s right. Tax reform has turned your tax-law-defined, not-for-profit hobby activity into an unfairly … [Read more...]
Tax reform deals professional gamblers a losing hand
If you’re a professional gambler, I sure hope you’re on a lucky streak. Because if you’re not, tax reform just cost you a lot of money. To put this simply, lawmakers were never the professional gambler’s friend, but now, thanks to tax reform changes, your government is even less willing to cut you a break. My advice? Before you head over to the casino, take a minute and … [Read more...]