Home Office Deduction for C and S Corporation

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…

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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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Non-Residential Property Improvements

Certain property that is normally depreciated over 39 years can now, (for a limited time offer), be deducted fully in 2022! First, who can take this Big Tax Break? Owners or Lessees of • Office Buildings • Restaurants • Bars • Stores • Strip Malls • Motel or Hotel • Warehouse • Factory Second, what…

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Can I do a 1031 (Like kind) Exchange with my Dad?

Maybe. There are many rules in place to limit tax free exchanges with a related party. Most are designed to prevent basis shifting. A tax-free exchange with a related party cannot be for tax avoidance purposes. If a property is sold at a gain, and the cash and the property remain within the family, the transaction will…

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Foreign Partners and Tax Items

Starting this year, there will be more reporting for flow through entities that have foreign partners or foreign tax items. New schedules have been added to assist the IRS in analyzing the foreign tax issues of these entities. Form K-1 is the traditional tax reporting paperwork for shareholders and partners. The new additional Forms K-2…

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Hiring your Children

Hiring your kids can have a multitude of benefits for you, your business, and your kids! I have listed some below: You get money in your kid’s hands that doesn’t come directly out of your pocket. Your kids develop a work ethic. Your kids learn some business knowledge they can use in later life. You…

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THE DEATH OF A TAXPAYER

Death is not a fun topic to write about. However, we know that we should discuss it for the benefit of the survivors. These days, very few people are filing Estate Returns or Form 706, as we tax geeks refer to them. The amount of assets to trigger a Form 706 filing requirement are more…

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NIIT Picking

The Net Investment Income Tax Real Estate Pros may be liable for the NIIT. The NIIT, or Net Investment Income Tax, is a 3.8% levy on passive investment income for certain high-income taxpayers. However, the IRS gives Real Estate Pros an exemption from this additional tax. The NIIT doesn’t apply to a real estate pro’s…

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SHORT TERM RENTALS TAXATION (Airbnb, VRBO, HomeAway, etc.)

Special and complex taxation rules can make the rents that you charge self-employment income. These short-term rentals are reported as business income on a Schedule C, as opposed to a rental activity reported on Schedule E. Therefore, net income is subject to the dreaded SE tax. Executive Summary: Properties Rented for Fewer than 15 Days…

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