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...]
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Tax reform expands your Section 179 deduction privilege
If you’re a regular reader of the Tax Reduction Letter, you know that the Tax Cut and Jobs Act can cause you some real pain. But in this article, we have good news — and here it is … Thanks to tax reform, you now have a more favorable and permanent Section 179 deduction for qualified assets placed in service starting in 2018. In fact, the new, improved Section 179 … [Read more...]
Tax Reform Does Much to Help Your Rental Real Estate
Do you own commercial and/or residential rental property? If you do, the recent Tax Cuts and Jobs Act provides some extremely nice benefits for you. For starters, qualified businesses income from your rental creates a possible twenty-percent tax deduction… and without any effort on your part. Plus, if you want to earn taxable income, the new law gives you enhanced bonus … [Read more...]
Are Your Rental Properties a “business” or investment” for tax purposes? Big difference.
If you own rental properties, you don’t want the IRS to classify them as an “investment.” Nope. You want those properties to qualify as a “trade” or “business.” Why? Because if your properties are treated as such, and reported on Schedule E, you can enjoy from some major tax breaks. You’ll get the whole story when you read my article titled Tax Tips: Are Your Rental … [Read more...]
Four “safe harbor” steps to take now!
Don’t wait! Now is the time to put your 2018 safe harbor de minimis expensing election in place. Why is it so important to act promptly? Because making the safe harbor election in 2017 for 2018 can save you a lot of money and make your life much easier. You see, the safe harbor election eliminates the burden of: Tracking small dollar-cost assets Depreciating and/or … [Read more...]