Tax

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…

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)…

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,…

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:…

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…

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…

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…

S Corporation Facts March 15, 2022 is not only the filing deadline for S Corporation’s 2021 calendar year Form 1120S, it is also the deadline for filing Form 2553 with the IRS to get a new entity S Corporation status for calendar year 2022. While the IRS is cracking down on S corporations with little…

Converting a Rental to a Residence Thinking of moving into a rental property before you sell it? Be aware of tax consequences before doing so. One old strategy for paying less tax on the sale of an investment property was to move into your rental and use the property as a primary residence for two…

Home Office Deduction for C and S Corporation Don’t Rent Your Home Office to Your Corp. IRC Section 280A(c)(6) prohibits claiming deductions for the rental of your home office to your corporation. Therefore, if you rent your office to your corporation, you would have to report the income but neither you nor your corporation would…