The Web is a fabulous invention, but the IRS has figured out how to use it against you. Here’s the story… For your rental properties, you need proof of your cost-allocation to land and depreciable building. If you don’t have proof of that allocation, the IRS has started using the Web to grab the tax assessor’s allocation and use that number to compute your depreciation … [Read more...]
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Advantages of a Single-Member LLC
Should you operate your business as a corporation, proprietorship, or single-member LLC? In my new article, the second in a series, I’ll explain the advantages and disadvantages of the single-member LLC. This form of business organization provides corporate-level liability protection for the business owner plus taxation as a sole proprietorship. Want to find out more? Check … [Read more...]
Use passive-loss rules to maximize rental profits
Do you own rental property? Then my new article makes “must” reading. Why? Because it will show you how to put the passive-loss tax rules to work. And these rules are powerful! They can help increase your tax deductions and boost after-tax profits on your house rentals. Don’t miss all the money-making information I’ve got waiting for you in my new article titled Tax … [Read more...]
Create tax-free income for your parents and you
You probably know that you can deduct business lodging travel costs. What you might not know is that you can turn that deduction into tax-free income for your mom and dad. (Or for other relatives or friends for that matter.) How? By paying them rent for your business stays. And that’s not all. You can deduct the business part of the “rent” you pay. Nice, huh? If you’re … [Read more...]
How to qualify your rentals for deductions
Do you own rental property? If the answer is “Yes,” then you need to pay careful attention to the “passive-loss” rules. You see, the tax law contains passive-loss rules that often prevent current-year deductions for rental property losses. If you want to avoid dangerous tax traps that can cost you big money, I urge you to read my latest article titled Tax Tips: Tax Loss … [Read more...]