Section 199A of the tax code can give youa 20% deduction… or a throbbing headache. We’ll give you the details (and a couple of aspirin)when you read the full article: “QBI Update: Impact of Negative QBI andPreviously Suspended Losses” [QBI=Qualified Business Income] Is your business defined by the IRS as a pass-through entity*? (If you’re reading this email, it … [Read more...]
Rental Properties
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Does Renting My Home for Two Months Kill the $500,000 Exclusion?
Sometimes tax rules are easy to follow. Other times, several rules interact with each other and have to be coordinated carefully to deliver the maximum tax benefit. In this issue of the Tax Reduction Letter, we’ll deal with just such an integration challenge that was ultimately successful. Read the full article for full details. Here’s an example of important … [Read more...]
Create Deductions: Use Your Vacation Home for Business Lodging
Do you own a vacation home or condo? If the answer is yes, remember this… If you use your property for personal use and business lodging, you’re entitled to some valuable deductions. What’s more, you can avoid oppressive vacation-home, and passive-loss rules… rules that can cost you big money and big problems with the IRS. (NOTE: Because we’re in the midst of the … [Read more...]
CARES Act Fixes TCJA Glitch on QIP, Requires Action
Definition:Qualified Improvement Property (QIP) Qualified Improvement Property refers to any improvement made by the taxpayer to the interior portion of a building that’s nonresidential real property (like office buildings, retail stores, and shopping centers.) Can you believe it? Congress screwed up… big time. What was the mistake they made that could cost you … [Read more...]
COVID 19: Important Tax Breaks from the CARES Act
___________________________________________________________I hope this issue of the Tax Reduction Letter finds you and your family in good health. Warmest good wishes at this difficult time from all of us at the Bradford Tax Institute.___________________________________________________________ As a response to the terrible COVID-19 pandemic, the government has quickly passed … [Read more...]