If you’re a real estate agent, you’re likely self-employed, which means you’re responsible for both sides of the taxes. The self-employment tax is 15.3%, versus the 7.65%, W-2 employees pay with the other half being paid by their boss. When you are paid as an independent contractor (1099), you are both the employee and… Continue reading Simple But Vital Tax Saving Strategy for Real Estate Agents
Image from www.dummies.com Did you know that if you own a business and buy a business property, you may be able to take depreciation deductions on your taxes IF the property is used for business purposes? There is a distinct difference between personal and business property. Personal property can look the same as business property,… Continue reading Use Depreciation Wisely and Save Big on Taxes
Image from www.sumopayroll.com 1. Employ your Child When you employ your child, the S Corp must pay payroll taxes on the wages you pay to your child. However, the child won’t if you pay him/her $12,000 or less per year. You aren’t required to file taxes if you make less than $12,000 which means a… Continue reading Killer Tax Saving Strategies for S-Corp Owners
Image from www.tylercauble.com What if you could take depreciation faster than 27.5 or 39 years on your real estate investments? It will surely help your bottom line, right? A cost segregation study can significantly improve your chances of front-loading deprecation deductions by breaking your building up into different categories. Land isn’t depreciable, so we’ll eliminate that from the equation right away. But, then you have equipment, furniture and qualified improvements… Continue reading Turn Your Rental Property into a Cash Cow
Image from www.inman.com Are you a Real Estate dealer or investor? Here are few aspects to consider: Buying properties periodically, fixing them up, and selling them makes you look like a dealer. But when you seldom do this , then you can qualify as an investor and hence get favorable tax treatment. If you… Continue reading Crucial Tax Considerations for Real Estate Investors
Picture from www.henssler.com Did you discover errors on your tax return? I know how frightening it can be, but fortunately, it’s not as hard to fix as you think. If you catch the error before the IRS tax due date or the IRS extended due date (October 15), you can file what’s called a… Continue reading Error on Your Tax Return? No Worries!!!
Image from www.nstp.org The Delta variant continues to put Americans at risk, and the government is highly encouraging all employers to mandate the vaccine. While the mandate itself is controversial and a matter of personal opinion, there are ways you can help your employees without mandating the vaccine. The federal government offers assistance to… Continue reading Killer Tax Saving Strategies from Covid
Separate out Husband-Wife Partnership and Hire Your Spouse as an Employee Consider this strategy for your existing husband-wife partnership if you are not in a community property state and you do not love the S corporation idea. Step 1. Separate the existing husband-wife partnership or LLC treated as a partnership for federal tax purposes and start… Continue reading The Strategy That Can Substantially Reduce Taxes For A Husband-Wife Partnership
Net Operating Loss (NOL) Opportunities The CARES Act now allows NOLs arising in tax years 2018, 2019, and 2020 to be carried back 5 years and claim refunds against the taxes already paid. Say for example, a taxpayer that had net operating losses in 2018 and/or 2019, and may have losses in 2020 as well,… Continue reading Understanding The Tax Benefits From COVID-19 (CARES Act)
Put Your Children on Your Payroll If your kids are under 18, you can hire them to take care of business chores and save on federal self-employment taxes of up to 15.3%. As long as the total wages you’re paying your child are less than $12,400 for the year, the child doesn’t have to pay… Continue reading Tax Saving Strategies For Sole Proprietors
