Wanna Deduct All Your Rental Losses?

Then You Better Study and Pass all Your Tests Generally, passive (rental) losses are ONLY deductible against income that you do not materially participate in, i.e., passive activity income. Losses that exceed your passive activity income are carried forward to the next year (indefinitely or until the related property is sold). However, Real Estate Professionals…

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Tax provisions in the Build Back Better Act

I have selected 15 provisions that will affect many of my clients. Basically, I find the bill to be extremely flawed. However, there are a few provisions I support, but very few. Let me hear from you on what you think. One year extension of expanded child tax credit; permanent extension of refundability. I am…

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What’s going on in the Estate and Gift Tax Arena?

Magic Show or Circus Act? Primer: The estate tax is imposed on bequests at death as well as inter-vivos (during life) gifts. A certain amount of each estate is exempted from taxation by the federal government. The exemption applies to total bequests and gifts (not including the annual gift exemption of $15,000 per year per…

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Real Estate Market Update

You know that investing in real estate is one of the best ways to increase your net worth. For most Americans, real estate equity is the largest source of their wealth. But with the market at all time highs, should you buy real estate now? Many experts believe that the real estate market will not…

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Real Estate Loss Deductions

Taxpayers who are not actively involved in their real estate rentals cannot deduct their losses against other income. However, taxpayers who are actively involved in their rental endeavors may be able to deduct some or all their losses. These taxpayers are limited to deducting $25,000 or less of their rental losses against other income. Taxpayers…

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Seize the Day with Simplified per Diems

In high cost locales, employees can get $292 tax free each day. The daily stipend is $198 for other areas. For meals and incidentals only, the rates are $71 a day in high-cost areas and $60 elsewhere. The per diem rate for incidental expenses is $5 per day. Self-employed individuals can use the meals and…

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S Corporation & Individual Tax Return Notes

S CORPORATIONS Basis Shareholder basis in S corporations is a big IRS enforcement priority. Owners of S corporations can deduct losses only up to their stock basis and loan basis on loans that the shareholders make directly to the company. The IRS knows that compliance in this area is deficient and is conducting audits. Exams…

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THE ABC’S OF TAX PLANNING

Alimony Deduction, Auto for Business, or Annuity Investments Bonus Depreciation, Bunching Deductions Charity Contributions, Capital Gains/Losses, Childcare Credit Deductions and Dependents Education Credits Filing Status or Flexible Spending Account Gifts, Gambling Losses Health Savings Accounts or Home Offices Installment Sales and IRA Contributions Like Kind Exchanges Meals for Business, Medical Expenses, Military Moving Points, Property…

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You need to get an Identity Protection PIN (IP PIN)

Tax Return Filing Fraud is on the Rise! An Identity Protection PIN is a six-digit number that adds a layer of security to your income tax filing. Starting in 2021, taxpayers may request an IP PIN before they are victims of identity theft. I recommend doing this as a proactive way to protect yourself from…

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Business Meal Deductibility

  Amount Deductible for Tax Years 2021-2022 Description 100% 50% Zero Restaurant meals with clients and prospects X Entertainment such as baseball and football games with clients and prospects X Employee meals for convenience of employer, served by in-house cafeteria X Employee meals for required business meeting, purchased from a restaurant X Meal served at…

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