It’s true. The IRS actually does have great news for you! You see, Uncle Sam has just decided to help out rental-property owners who’ve used the rental property as their principal residence. Here’s the story in a nut shell… Thanks to the latest IRS advice, when you sell your rental property you could end up with a negative total tax on the sale. Getting this “negative” tax … [Read more...]
Losses
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Watch out for the dangerous “side business rules”
It’s no fun when your side business loses money. However there is a bright side. You can generally use your losses to offset other income or apply the losses to lower your income taxes. But be careful. If you don’t handle things the right way, the IRS might: Invoke the “hobby loss rule” Claim that you’re running your side business as a hobby Prohibit you from deducting … [Read more...]
How to liquidate your S corporation the right way
It’s a fact… If you liquidate your S corporation the right way, you can use any losses as tax deductions on your personal tax return — and keep the assets personally! But you have to know how to play the game. You see, lawmakers and the IRS have made things tricky. (No surprise!) Which is why it’s so important to make sure that both corporate and personal gains and losses are … [Read more...]
How to make your rental-property activity, tax deductible
Your rental property provides shelter for your tenants. And it can also provide a nice tax shelter for you if you know how to play your cards right. One great way to make sure your rental properties stay tax deductible is for you or your spouse to qualify as a “real-property trade or business.” What does that involve? Is it difficult to attain this status? We’ll … [Read more...]
Four ways to turn passive losses into deductions
Selling your rental property? If the answer is “yes,” I’ve good news for you. The IRS will now allow you to deduct all those losses you couldn’t deduct in past years. Uncle Sam calls those past, denied losses, “suspended losses.” And to make sure that you can now claim all your formerly suspended tax deductions, you need to avoid the hidden traps the IRS has set for … [Read more...]