Drive Time Increases Odds of Deducting Rental Property Losses To get my complete article with all the details… You own rental property, log your hours, and still fall short of the 750-hour real estate professional test. Meanwhile the drive time to and from your rentals sits on the sideline, uncounted. The IRS's own guidance says drive time doesn't count toward … [Read more...]
The IRS Could Pay You $6,614 To Hire Your Child
The IRS Could Pay You $6,614 To Hire Your Child To get my complete article with all the details… The government will pay you thousands for a decision you might already be making anyway: putting your child to work in your business. Sara Jackson's 13-year-old will earn $16,100 tax-free this year, and Sara will pocket a check from the federal and state governments for … [Read more...]
Do You Have the Right Business Entity for Your Section 199A Deduction?
Do You Have the Right Business Entity for Your Section 199A Deduction? To get my complete article with all the details… You're a high-earning Schedule C filer — 1099s, single-member LLC, sole proprietor — and you assume your 20 percent Section 199A deduction is safe. It isn't, not if your taxable income climbs too high without payroll or depreciable property behind … [Read more...]
Your December Inventory Buy: Deduct It or Wait To Sell?
Your December Inventory Buy: Deduct It or Wait To Sell? To get my complete article with all the details… Last month, we showed how a business could buy $500,000 of goods on December 20 and deduct the full amount that same year. A sharp-eyed reader pushed back: IRS Publication 334 says a small business must still use a method that "clearly reflects income" — doesn't that … [Read more...]
You Beat the IRS — Can They Pay Your Attorney Too?
You Beat the IRS — Can They Pay Your Attorney Too? To get my complete article with all the details… You fought the IRS, spent thousands on attorney fees, and won. Now you're wondering: can you get that money back? Theoretically, yes — but the IRS makes it notoriously difficult. You have to clear seven separate hurdles, from proving the IRS's position wasn't … [Read more...]