What do You do

What do You do if You Don’t have Enough Money To pay your Taxes? Maybe you should apply for a Payment Plan. What is a payment plan? A payment plan is an agreement with the IRS to pay the taxes you owe within an extended time frame. You should request a payment plan if you…

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What is a Health Reimbursement Arrangement?

What is a Health Reimbursement Arrangement? A health reimbursement arrangement (HRA) is a legal plan that reimburses employees for qualified medical expenses up to an IRS approved amount. The reimbursements are deductible by the company. The HRA must be funded solely by an employer. The contribution cannot be paid through a voluntary salary reduction agreement…

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“That’s Foreign to Me”

People who get caught committing mortgage fraud may have their loan called immediately. Then they would have to refinance or sell their house. What constitutes mortgage fraud, you ask? The following are a few examples. 1. Occupancy fraud – purchasing an investment or vacation property, but claiming it is your personal residence. 2. Hiding debt…

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Is Your Retirement SECURE???

The Setting Every Community Up for Retirement Enhancement Act of 2019, better known as the SECURE Act, was passed in December of 2019. Most provisions in the law go into effect on January 1, 2020. Key takeaways—The SECURE Act: • Repeals the maximum age for traditional IRA contributions. • Increases the required minimum distribution (RMD)…

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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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Taking a Gamble

Gambling losses are deductible ONLY up to Gambling winnings and ONLY as an itemized deduction. Q: Can you carryover your gambling losses that exceed your gambling winnings? A: The short answer is NO and there is no long answer. Q: What happens if you have gambling losses, but you do not itemize your deductions? A:…

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Tax-Saving Strategies for Real Estate Investors

1. Own Properties in a Self-Directed IRA You’re probably familiar with IRAs and Roth IRAs as a tax-deferred way to invest for retirement. What you may not know is that you can set up your own self-directed IRA and use it to invest in real estate tax-free. Be warned: This isn’t as simple as buying…

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Vehicles

Vehicles Questions about vehicles are one of the most frequent inquiries I get during tax season. There is so much confusion and misinformation regarding the deductibility of vehicle expenses. A vehicle used for business may be owned by the business or by an employee. The method of claiming the deduction will differ depending on the…

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Foreign Investment in Real Property Tax Act of 1980

Foreign Investment in Real Property Tax Act of 1980 Under FIRPTA, a buyer who purchases U.S. real estate from a foreign seller is obligated to withhold from the seller’s proceeds, and submit to the IRS, a percentage of the sales price of the U.S. real property. This tax withholding is a prepayment of the foreign…

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