Tax

Overall, the Tax Cuts and Jobs Act will benefit many taxpayers including homeowners, real estate investors, and real estate professionals. However, the act does reduce the tax benefits of homeownership and may cause some negative impact on real estate markets. In fact, the NAR is projecting overall 1% to 3% slower growth in home prices…

Are you looking for that perfect business that you can buy for next to nothing, operate from the beach, make tons of cash and sell for millions of dollars? Look no further. Honestly, stop looking because there is no such creature. However, if you are serious about acquiring a good business (warts and all) that…

Why We do What We do in Life and Business, by Charles Duhigg Scientific research into habits has given us explanations as to why habits exist and how they can be changed. The book, The Power of Habit, has many interesting stories that exhibit these new-found discoveries on habits. Stories include how Tony Dungy transformed the…

  Can your parents itemize their deductions? If not, consider you and your siblings buying the home from them at FMV and then rent the home back to Mom and/or Dad. You can deduct the interest you pay your parents and your parents will get a steady cash flow (from the mortgage payments) they otherwise…

2019 is the last year for the 30% Energy Tax Credit (drops to 26% in 2020). Geothermal heat pumps, solar-electric, solar-water-heating, fuel cell, and small wind-energy property qualify for the tax credit. A taxpayer may claim the credit for qualified expenditures for a system that serves a dwelling unit located in the United States that is owned…

Excerpts edited by David M. Snyder, CPA, ASBC The 7 Habits of Highly Effective People By Stephen Covey The book differentiates between what is important and what is urgent. Priority should be given what is urgent and important. Warren Buffett’s Advice on Goal Setting (Paraphrased for Focus) Write down your top 10 things for your…

Does home mortgage interest matter anymore? We have all heard that fewer people will itemize their deductions for 2018. But, did you realize that those that still itemize will get less deductions? Yes, it was well publicized that the amount of state and local taxes that can be deducted is now limited to $10,000.  Less…

  There must be as many ways to go about setting and accomplishing goals as there are goals to accomplish. I have compiled the following methodology by borrowing from many different sources; none more than the great motivational master himself, Tony Robbins. First determine exactly what you want and why you want it. Brainstorm for about…

Understand the complexity of your return. If you have just a few W-2’s and can file a Form 1040-EZ then most any registered tax preparer will be able to competently handle your filing. However, if you have rental property, a small business or other complexities, you should get a CPA to prepare your tax filings. Realize…

Business asset purchases can be deducted in several different ways. 100% bonus depreciation is back. Both new and used qualifying assets can be fully depreciated in the year of purchase. Section 179 expensing is also available. The limit of $1M of asset purchases doesn’t affect many small businesses. The taxable income limitation can be used to your advantage if…