The Inflation Reduction Act

The Inflation Reduction Act Energy Credit Provisions (Give Credit where Credit is Due) Credit for alternative energy system based on renewable energy source For example, credit for using solar panels as an energy source for your home got extended to 2034. The improved credit is 30% (26% for 2033 and 22% for 2034) of the…

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How to Protect Yourself from Inflation

How to Protect Yourself from Inflation Focus on inflation-hedged assets. Precious metals, I-Bonds and real estate are all considered inflation hedges. Crypto is a speculation not an investment as can be seen by both its recent downfall and the increasing number of crypto thefts. 1. Precious Metals: a. Stock in mining companies i. PRO –…

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How to Protect Yourself from Inflation

Focus on inflation-hedged assets. Precious metals, I-Bonds and real estate are all considered inflation hedges. Crypto is a speculation not an investment as can be seen by both its recent downfall and the increasing number of crypto thefts. 1. Precious Metals: a. Stock in mining companies i. PRO – familiar and safe market ii. CON…

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The Inflation Reduction Act

The Inflation Reduction Act of 2022 was signed into law on Aug. 16, 2022. The legislation includes large investments in making health care and prescription drugs more affordable, fighting climate change and taxing wealthy corporations. Despite its name, estimates show that the bill won’t do much to reduce inflation. A projection from Penn Wharton estimates…

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IRS Tax Liens

Once your tax lien is fully paid off, you must still ask the IRS to withdraw the lien. The IRS will withdraw the lien immediately if the lien is paid in full and you have been tax compliant for the past three years. The cool thing about the removal of the lien is it is…

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100% Depreciation

Sweet Deal Businesses can deduct the full cost of new and used qualifying assets with lives of 20 years or less that they buy and place in service during the year. A used asset can not have been depreciated by the previous owner. So, for all practical purposes, the asset purchased cannot be real estate,…

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Real Estate Professional

To qualify as a real estate professional, you must meet two time requirements. 1. You must spend more than 50 percent of your time in real estate activities in which you materially participate. 2. You must spend more than 750 hours in real estate activities in which you materially participate. Real estate activities include real…

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The Principal Residence Gain Exclusion

The $250,000 ($500,000, if married) home sale gain exclusion break is one of the great tax-saving opportunities. The $250,000 ($500,000, if married) home sale gain exclusion break is one of the great tax-saving opportunities. To take full advantage of the principal residence gain exclusion break, you must pass two tests: the ownership test and the…

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Loophole: Harvest Tax Losses on Cryptocurrency

Because cryptocurrencies are classified as “property” rather than as securities, the wash-sale rule does not apply to them. (The wash-sale rule prohibits a taxpayer from deducting a loss on a sale of an investment that was replaced with the same or a “substantially identical” investment 30 days before, on the day of the sale, or…

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