Here’s some really good news and it’s a big deal… Section 199A of the new tax code lets you claim a deduction against your IRS 1040 taxable income of up to 20% of your qualified business income. Yes. These new rules can really put big money in your pocket. Which is why I urge you to read my new article titled Tax Tips: Tax Reform: Wow, New 20 Percent Deduction for Business … [Read more...]
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Will Section 199A Phase In or Phase Out Your 20 Percent Deduction?
Are you running a “pass-through” business like a proprietorship, S corporation, or partnership? Is it an “in-favor” business? If you’re answering “yes,” you qualify for tax reform’s new 20% deduction on qualified business income. (This is true whether you’re above, below, or in the expanded wage and property phase-in range.) BUT… if your business is an IRS-defined … [Read more...]
Tax-Smart Ways to Cash Out of your Real Estate Property
Yes. Section 1031 exchanges are a great way to avoid taxes when you’re acquiring bigger and better properties. But be aware! When the time comes to cash out, 1031 should not be used. What’s the best way to avoid taxes and keep cash in your pocket? There are three proven strategies you can take advantage of as you’ll learn when you read my new article titled Tax … [Read more...]
Beat the passive-loss rental-property rules
If you’re a savvy taxpayer, you want to deduct your business, rental, and non-rental losses whenever possible. Why? Because these deductions put cash in your pocket (which makes the losses easier to bear). But be aware. The passive-loss rules put your legitimate tax losses into a tax-loss prison and releases them only when you have passive income (or dispose of the … [Read more...]
Fix those depreciation errors now!
It’s a sad fact … Many taxpayers don’t realize that depreciation is a very valuable and often misused (or mistakenly computed) tax deduction. If you failed to use depreciation rules the right way, you could be losing thousands of dollars that should be in your pocket. What can you do to fix depreciation errors you might have made in the past? Plenty. If you want to … [Read more...]