If you own a second home, my new article makes “must” reading. Why? Because a long-forgotten, Tax Court ruling can help you dramatically increase deductions on your second home! By the way, you won’t find any mention of this money-saving strategy in IRS guidance to taxpayers. Unless you study old cases the way we do, you might never know how to save thousands of dollars in … [Read more...]
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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...]
When a house won’t sell, consider a lease-option
Trying to sell a house that’s sitting on the market without attracting a decent offer? Don’t give up. Think creatively and use a lease-with-an-option-to-buy strategy to get the cash flow flowing! When you find the right tenant, this arrangement can make sense for everyone concerned. But beware. There are tax traps that you’ll need to avoid if you want to come out a winner. … [Read more...]
How to slash your tax bill when you sell your home
Thinking about selling your current home or vacation property any time soon? Then my new article is for you! You see, I’ll explain easy steps you can take right now to prepare for (or completely avoid!) the tax hit you may have to take when you sell. For example, I’ll explain why you should never rely on the home-sale gain-exclusion to shield all of your profit. And I’ll … [Read more...]