Thinking of grouping rental properties? Read my new article before you make a move. “Does Grouping Rental Properties,Release Suspended Losses?” To get my complete articlewith all the details... One of the things I always enjoy, is hearing from my readers of the Tax Reduction Letter. I recently received a note from a CPA about a top real estate broker, asking me … [Read more...]
Passive income and losses
Sorted by Date
Selling Your Appreciated Vacation Home? What About Taxes?
Got a vacation home you want to sell? Be careful.The tax laws that apply can be tricky...and costly! What exactly is a “vacation home.”? Seems obvious, doesn’t it? Well, we’re dealing with the IRS so it isn’t. If you have a home that you rent outand use personally, the IRS defines it as a “vacation home.” So what? . . . you may ask. The answer is that the … [Read more...]
Grouping: Tax Strategy for Owners of Multiple Businesses
Did you know your business losses can be suspended under the “passive activity loss” rules? Don’t panic. It’s “grouping” to the rescue. So what’s grouping all about? It’s a strategy for owners of several businesses. A proven strategy that lets you enjoy all the benefits of the intricate passive-loss rules. The basic strategy involves grouping your business activities … [Read more...]
Tax Issues When Your Vacation Home Is a Rental
Is your vacation home a personal residence or a rental property? It sure matters to the IRS! The distinction has serious implications for how big your tax bill will be. IMPORTANT FACT: If you have a home that you rent out and use personally, you have an IRS-defined “vacation home.” According to the IRS, your vacation home is either a personal residence or a rental … [Read more...]
What’s the best choice for Vacation-Home Rental? Schedule C or E?
To get my complete, FREE articlewith all the details… Do you rent out a vacation home? If you do, when it comes tax planning you have to make a choice. Should you plan to use Schedule C or Schedule Eto claim your income and expenses? “It all depends.“ Schedule C is the smart choice if you show a tax-loss on your rental property. Schedule C lets you deduct your … [Read more...]