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...]
Passive income and losses
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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...]
How to beat the self-rental deduction trap
Last month, I wrote an important article that explained how renting an office to your business can create a trap that crushes tax deductions. The solution to the problem that I outlined involved having your business own the building. This certainly solves the tax deduction problem but it opens up the building and your business to additional legal exposure. Is there a … [Read more...]
How to avoid the tax law’s “double whammy”
Should you buy an office and rent it to your business? Be careful! If you don’t know what you’re doing you could be engaging in a “self-rental” that limits your loss deductions and taxes your profits. In other words, handle things the wrong way and the IRS can get you coming and going. The good news? There’s a solution, and you’ll find out what it is when you read my new … [Read more...]