As a result of the recent Windsor Supreme Court decision, the IRS issued Revenue Ruling 2013-17. It states that same-sex married couples are to be treated identically to traditionally-married couples for federal income tax purposes. The new ruling makes this the perfect time to review the benefits (and disadvantages) of married status. So, no matter whom the wedding bells are … [Read more...]
Passive income and losses
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How to turn rental-property losses into tax deductions
Here’s good news for rental-property owners… Your rental property can serve as a valuable tax shelter when you claim tax deductions for your rental-property losses against your income. But to take advantage of this useful tax shelter you need to: Qualify as a tax-defined real estate professional Pass a “material participation test” for each shelter property We’ll … [Read more...]
How higher tax rates can increase rental property profits
Higher taxes mean lower profits, right? Wrong! Even though the American Taxpayer Relief Act of 2012 (and other tax-law changes) can mean higher taxes on your rental properties, you can still come out smelling like a rose. You see, the new, higher tax rates can actually leave you with more after-tax cash in your pocket. How does this work? We’ll explain this paradox and … [Read more...]
Don’t let the “self-rental” rules crush you!
Do you rent buildings or equipment to your business? Then be careful. Very careful. You see, in all probability you likely face the self-rental rules. If you’re not sure what these rules mean to your business, now’s the time to find out. How you organize your rentals can have huge tax implications. You’ll get complete information when you read my new article titled Tax … [Read more...]
Release Rental Losses Trapped by Passive-Loss Rules
Ouch! The tax law’s passive-loss rules can really hurt a rental-property owner. As you may have already discovered, these onerous rules can “trap” property losses and cost you big money in taxes. Which is why my new article makes must reading. You see, with proper planning you can release those trapped tax benefits and use them to reduce your tax bill. You’ll find out how … [Read more...]