As part of the Tax Cuts and Jobs Act, Congress created the qualified improvement property category. It was intended to let you fully expense qualified property with bonus depreciation. Unfortunately, Congress made a drafting error in the law which means you can’t use bonus depreciation for qualified improvement property. But don’t let that get you down. We’ll explain how … [Read more...]
Rental Properties
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Tax tips. How to safeguard your home-sale exclusion
Yes. The times they are a-changin.’ Sometimes for the better and sometimes for the worse. Here’s an example of a change in the tax law that could cost you big money if you’re not paying attention… The days when you could convert your rental property or vacation home to a principal residence, and then use the full $250,000/$500,000 home-sale exclusion to avoid taxes, are … [Read more...]
Don’t let the “cliff” kill your new Section 199A deduction
Thanks to Section 199A of the new tax law, you could wind up with a nice 20-percent deduction worth as much as $63,000. Or you could wind up with nothing. Zero. Zip. Why is your deduction at risk and what can you do to make sure you come out a winner? Here’s the answer. Take a minute and read my new article titled Tax Tips: Don’t Let the Cliff Kill Your New Section 199A … [Read more...]
Slash Self-Employment Taxes By Renting From Your Spouse
Do you operate your business as a sole proprietor? If you do, you know that Uncle Sam helps himself to a big chunk of your profits in the form of self-employment taxes. To be specific, he’s taking a full 14.13-percent! (That’s 92.35% of the published 15.3 percent because there’s a reduction on Schedule SE.) But hang on a second. There is something you can do to … [Read more...]
4 Ways to Deduct Legal Fees After Tax Reform
As you may have painfully discovered, legal fees can add up fast. In the past, Uncle Sam softened the blow a bit by allowing you to deduct those fees. But be aware. Thanks to lawmakers, tax reform has made it more difficult than ever to write off your legal bills. However, all is not lost… If you research the tax code the way we’ve done, you’ll learn that there are four … [Read more...]