Would a unique historic building be perfect for your office? It may be a lot more affordable than you think. You see, the federal government and state governments want you to rehabilitate these historic buildings -- and they give you an attractive financial incentive to do so. Here’s their deal… If you invest in and restore a historic building, federal and state … [Read more...]
Rental Properties
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A creative way to slash self-employment taxes
Do you operate your business as a sole proprietorship? If the answer is “yes,” you know that Uncle Sam takes a big share of your profits in the form of self-employment taxes. But there’s good news… With the help of your spouse, you can reduce your self-employment tax bill by using an innovative but simple rental strategy. You see, if you rent an office from your spouse, you … [Read more...]
How to survive an IRS rental properties audit
I recently heard from a reader of the Tax Reduction Letter asking for advice. It seems that an IRS auditor had examined the couple’s three rental properties, disallowed their losses, and told them to expect a tax bill for $55,000! My reader asked if there was anything he and his wife could do to successfully challenge the IRS ruling and avoid paying the $55,000. It turned … [Read more...]
When you can (and can’t!) deduct mortgage insurance
The tax law used to help a lot of people by letting them deduct the cost of mortgage insurance. But times change, and in 2013 many of these deductions were no longer allowed. How does the current law treat deductions for government or private mortgage insurance on homes, rentals, and home-offices? You’ll find out when you read my new article titled Tax Tips: When You Can … [Read more...]
Is your real estate activity a “business” or are you an “investor”?
How do you structure your real estate activities? Are you running a business or simply investing in properties? The answer can have big tax consequences! EXAMPLE: If you want to take a trip to a real estate seminar you may be able to deduct all the related expenses… or maybe not. It all depends on how you’ve structured your activities. Which is why you need more … [Read more...]