How to qualify as a real estate professional: 1. First, you must materially participate (see below) in a real estate business. The business of renting and leasing realty is a real estate business. 2. Second, more than 50% of the personal services you perform in all...
S corporations the most suitable form of business for the new venture Here is an explanation of the reasons why. The biggest advantage of an S corporation over a partnership is that as S corporation shareholders you would not be personally liable for corporate debts....
Substantiating employee expense account and expense reimbursement arrangements. Q- 1. Do you have an expense account or expense reimbursement arrangement with your employer? A- A. You get a better tax result on your own income tax return if your expense account or...
Tax aspect of a parent entering a nursing home. Deductibility of long-term medical care services: The costs of qualified long-term care, including nursing home care, are deductible as medical expenses to the extent they, along with other medical expenses, exceed 10%...
Cars are subject to more restrictive rules than those that apply to other depreciable assets. The TCJA added additional increases. If you place a vehicle in service in 2018, then the maximum deductions are $18,000 for year 1, including bonus of $10,000 $16,000 for...
Save taxes by transferring assets into your children’s names. This tax technique is called income shifting. It seeks to take income out of your higher tax bracket and place it in the lower tax brackets of your children. While some tax savings are available through...
Thee tax consequences to you of your company’s offer to grant you an incentive stock option (ISO) on its stock. The ISO gives you the right to buy 1,000 shares of the company’s stock at its fair market value (FMV) at the time of the ISO’s grant,...
IRS NEWS Responding to many questions received from taxpayers and tax professionals, the IRS said that despite newly-enacted restrictions on home mortgages, taxpayers can often still deduct interest on a home equity loan, home equity line of credit (HELOC) or second...
Filing late can be a frustrating process. You may be unsure of any penalties and interest that may be applied from filing late. These penalties and interest may be abated if you take the proper steps with the tax authorities. IRS Rules The IRS may provide...
Retirement is an event that often triggers one’s desire to review his estate plan. Even if you’re are not ready for a full-scale review, retirement may directly affect certain elements of your estate plan and require that those be looked at in light of the changed...
