Image from www.freepressjournal.in If you own a home that greatly appreciated in the last few years, you might worry about the tax burden it would cause when you sell. Even with the primary residence capital gains exclusion of $250,000 for single filer and $500,000 for joint filers, you could owe a significant amount in… Continue reading 1031 Exchange and Sale of Home – How to Double Dip
Image from www.tatacapital.com You’ve likely heard of the reverse mortgage by now and wonder if it’s right for you. While many people see it as a way to age-in-place, there’s another major benefit most people overlook – the tax benefits. If a majority of your assets are tied up in your home, the reverse mortgage… Continue reading Tax Benefits of Reverse Mortgage
Image from www.thinkrealty.com Must you Pay Self-Employment Tax on Real Estate Flips? If you buy houses to fix and flip, you may be on the hook for self-employment taxes. In other words, you might have to pay 15.3% of your income toward Social Security and Medicare taxes in addition to your ordinary tax rate. Why… Continue reading Crucial Tax Tip for Real Estate Flippers
Image from www.meijburg.nl If you own and rent out non-residential property and make improvements to it, you may deduct the full expenses in the year you spend the money rather than spreading it out over multiple years. The improvements made must fall under the Qualified Improvement Property tax code. Here’s what you must know. What… Continue reading Crucial Tax Tip for Real Estate Investors
Image from www.mightytaxes.com If you own a property that you rent out for an average of less than 7 days for the calendar year, you may not have to report it like a rental property, aka business. It’s a tricky situation that requires careful evaluation of how often you rent the home throughout the… Continue reading CRUCIAL TAX REPORTING TIPS FOR AIRBNB PROPERTY OWNERS
Image from www.goqbo.com Do you have a sideline activity that you think of as a business? From this sideline activity, are you claiming tax losses on your Form 1040? Will the IRS consider your sideline a business and allow your loss deductions? The IRS likes to claim that money-losing sideline activities are hobbies rather than… Continue reading Crucial Tax Tip for Business Owners
Image from www.cedaradu.com Personal Use of a Dwelling If you have a home you rent out, but also use as a personal residence, the tax deductions you can take are slightly different than if you just rented the property out and never used it for personal use. A dwelling unit is considered used for personal… Continue reading Tax Treatment of a Dwelling Unit
Image from www.https://elderpark.org If you work for yourself, you know how hard it is to swallow the 15.3% self-employment tax you must pay. But did you know there are ways to lower it and one way is to rent to your spouse? It sounds crazy, but if you own an office building or other… Continue reading Killer Tax Saving Strategy for the Self-Employed
Image from www.henssler.com Many business people don’t realize the tax benefits they’re passing up when they don’t take a deduction for 100% of their business meals, thanks to the new IRS rules. Thanks to COVID, for the calendar years 2021 and 2022, most business meals can be deducted at 100% versus 50%. Of… Continue reading How to Deduct 100% of Your Business Meals
Image from web.blockadvisors.com Before you deduct your travel expenses, it’s important to determine if they are truly business expenses or the IRS will consider it a personal day. There is a fine line between both and understanding the differences will ensure you file your taxes correctly. To be clear, we are talking about overnight business… Continue reading How to Claim Tax Deduction for Business Travel