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January 2023

Download this PDF for the Already Enacted 2023 Tax Law Changes

As a subscriber, you likely know you are going to see some big tax changes this year. Some are already in place. To help you remember what they are, and to have them available for a quick look anytime you like, download this PDF.


Section 1031: Don’t Miss This Depreciation Election

You can grow your real estate portfolio and compound your tax savings by combining a 1031 exchange with a cost segregation study. When you use this combination, make sure to consider the election under IRS Reg. Section 1.168(i)-6(c)(5)(iv). Its proper use can save you thousands—and of course, failure to use it could cost you thousands.


Tax Consequences of a Short Sale of Your Principal Residence

Short sales provide a path for underwater homeowners to get out of their mortgages without going through foreclosure. But mortgage debt forgiven following a short sale can be taxable income for the homeowner unless tax law provides a specific exception.


Are You Cheating Yourself by Using IRS Mileage Rates?

If you qualify to use IRS mileage rates to deduct the use of your vehicle, you need to know whether you are cheating yourself with the method you select. The good news is, this article includes a tool that will give the one best method for your deduction and also tell you how much after-tax cash you pocket with that good method.


How to Section 1031 Exchange into a Delaware Statutory Trust

The savvy real estate investor uses Internal Revenue Code Section 1031 to build a real estate empire without paying federal income taxes. But what if that investor wants to get off the landlord merry-go-round—and avoid paying taxes? As you see in this article, the investor has choices.


Do You Owe Self-Employment Tax on Airbnb Rental Income?

The IRS said that your Airbnb or similar rental can produce self-employment income subject to self-employment taxes when you provide services to the tenants. This article gives you a road map to avoid that self-employment tax.


Updated: Download IRS Key Contact Information and Helpful Links

Would you like to have, at your fingertips, updated IRS key contact info and helpful links for information about amended returns, estate and gift taxes, tax transcripts, power of attorney, stimulus checks, tax help for businesses, and many other topics? If so, download the PDF linked in this article.


Primer: When Cancellation of Debt (COD) Income Can Be Tax-Free

It’s been almost 15 years since cancellation of debt was a story above the fold. Should we dip into recession, you likely will see more stories about cancellation of debt. For federal income tax purposes, canceled debt is taxable—unless it meets one of the many possible exceptions, as explained in this article.




December 2022

Section 1031 Exchanges vs. Qualified Opportunity Zone Funds: Which Is Better?

When you sell commercial or rental property, you can avoid paying capital gains tax by (1) completing a Section 1031 exchange for another replacement property, or (2) investing all or part of the gain in a qualified opportunity zone fund. Which is best for you depends on your specific goals.


Crowdfunding: Is It Taxable?

Billions of dollars are raised each year through crowdfunding websites such as GoFundMe and Kickstarter. Whether this money is taxable income to the recipient depends on whether it is a gift, a payment made in return for a reward, a loan, or a payment made in return for equity ownership in a business.


2023 Retirement Plans Desktop Reference for One-Person Businesses

Download your PDF copy of the 2023 retirement plans desktop reference for one-person businesses.


Q&A: Home-Office Deduction for Orthodontist

Learn how orthodontists and other professionals can have an office downtown and also qualify for a home-office deduction using tax law’s administration rules.


$80 Billion to the IRS: What It Means for You

The Inflation Reduction Act gives the IRS an additional $80 billion over the next decade, enabling it to add thousands of new employees and upgrade its operations. Audits will increase over the next few years, but not for everybody. High-income taxpayers will be in the IRS’s crosshairs.


Q&A: Two More Reasons NOT to Rent Equipment to Your Corporation

Should you buy equipment, vehicles, and other personal property in your personal name or an LLC name and then rent them to your corporation? There’s much to consider, as you learn in this Q&A.


Use In-Kind RMDs to Avoid Selling Your Retirement Account Assets

If you need to make a required minimum distribution (RMD) from your IRA or other retirement account this year, doing an in-kind distribution enables you to avoid selling stocks or other securities in your account that have gone down in value over the past year. An in-kind RMD can also reduce taxes on future appreciation when you later sell the assets.


Is Mileage to Rental Properties Tax-Deductible?

How do you treat a trip from your home to your rental property? Does the trip produce deductible mileage? Or is the trip a personal commute? If it’s a personal commute, what could you do about it?


I Won My Home-Office Deduction

During an IRS audit, this taxpayer and his CPA won their case by being persistent and using two articles from the Tax Reduction Letter.




November 2022

Update 105-HRAs, MSAs, and FSAs to Allow Over-the-Counter Drugs

You may want to amend your existing health reimbursement accounts, medical savings plans, and flexible spending accounts to allow non-prescription over-the-counter drugs and menstrual care products.


2022 Last-Minute Vehicle Purchases to Save on Taxes

Here’s an easy question: Do you need more 2022 tax deductions and credits? If so, continue reading. Next easy question: Do you need a replacement business vehicle? If so, you can simultaneously solve or mitigate both the first problem (needing more deductions and credits) and the second problem (needing a replacement vehicle), but you need to get your replacement vehicle in service on or before December 31, 2022. This article helps you find the right vehicle for the deduction or credit you desire.


2022 Last-Minute Year-End Tax Deductions for Existing Vehicles

Yes, December 31 is just around the corner. That’s your last day to find tax deductions available from your existing business and personal (yes, personal) vehicles that you can use to cut your 2022 taxes. In this article, you will learn how to find and release tax deductions that the tax code trapped inside your existing business cars, SUVs, trucks, and vans. And you will learn how the Tax Cuts and Jobs Act makes it possible for you to find a big deduction from your existing personal vehicle (note the terms “existing” and “personal”).

 


Beats Google—PDF Download of Every State’s Tax Department Info

Download this PDF to have at your fingertips for each of the 50 U.S. states: the income tax phone numbers for individual and business tax returns and the website URL for the taxing agencies or departments.


2022 Last-Minute Year-End General Business Income Tax Deductions

Your year-end tax planning doesn’t have to be hard. This article takes your daily business activities and identifies easy year-end tax-planning moves you can make today. Our six strategies will increase your tax deductions or reduce your taxable income so Uncle Sam gets less of your 2022 cash.


2022 Last-Minute Section 199A Tax Reduction Strategies

Remember to consider your Section 199A deduction in your 2022 year-end tax planning. If you don’t, you could end up with a useless $0 for your deduction amount. We’ll review three year-end moves that simultaneously (a) reduce your income taxes and (b) boost your Section 199A deduction.


2022 Last-Minute Year-End Tax Strategies for Marriage, Kids, and Family

If you are thinking of getting married or divorced, you need to consider December 31, 2022, in your tax planning. Here’s a question: Do you give money to family or friends (other than your children who are subject to the kiddie tax)? If so, you need to consider the zero-taxes planning strategy. And now, consider your children who are under age 18. Have you paid them for work they’ve done for your business? Have you paid them the right way? You’ll find the answers here.


2022 Last-Minute Year-End Retirement Deductions

Does your business have a retirement plan for you and, if you have employees, your employees? It should. You have more new reasons in 2022 to get your retirement plan in place and perhaps make changes in existing plans.


2022 Last-Minute Year-End Medical Plan Strategies

Are you eligible for COVID-19 tax credits for yourself and/or your employees? Have you reimbursed your employees (including your employee spouse) as stipulated in your health reimbursement arrangements? And if you operate as an S corporation, do you have your health insurance set up correctly for your best tax deduction? In this article, we help with these matters and more.


2022 Last-Minute Year-End Tax Strategies for Your Stock Portfolio

When you take advantage of the tax code’s offset game, your stock market portfolio can represent a little gold mine of opportunities to reduce your 2022 income taxes. The tax code contains the basic rules for this game, and once you know the rules, you can apply the correct strategies. In addition to saving taxes with the game of offset, you can avoid paying taxes on stock appreciation by gifting stock to charity, your parents, and your children who are not subject to the kiddie tax.




October 2022

Answers to 12 Employee Retention Credit (ERC) Questions

If you had W-2 employees in 2020 and/or 2021, you need to look at the Employee Retention Credit (ERC). This is true whether you already filed for it or are thinking of filing for it. See the 12 answers in this article for insights into the ERC.


Buying an Electric Vehicle? Know These Tax Law Changes

If you purchase an all-electric vehicle or a plug-in hybrid electric vehicle, you can qualify for a tax credit of up to $7,500. But the newly enacted Inflation Reduction Act has thoroughly revamped the credit beginning August 17, 2022, with additional changes taking place in 2023 and 2024. If you are planning to take advantage of this credit, there’s much to know, as you will learn here.


New Law Improves Energy Tax Benefits for Biz Owners and Landlords

The newly enacted Inflation Reduction Act expands and extends tax credits for installing solar panels, electric vehicle chargers, or other renewable energy systems in commercial buildings and residential rental property. It also increases the tax deduction for making commercial buildings more energy-efficient.


Baseball Cards and Memorabilia as Office Decorations

The proper tax deduction treatment for decorating a business office with a baseball card and memorabilia collection comes from the courts in their decisions on depreciating antiques.


Avoid These Common Mistakes When Converting to an S Corporation

Are you thinking of converting your business to an S corporation? The IRS will be watching you closely. Learn how to avoid the common mistakes that many business owners make.


Get Ready to Say Goodbye to 100 Percent Bonus Depreciation

One hundred percent bonus depreciation ends on December 31, 2022. Does this mean you should rush out and purchase business property before 2022 ends to take advantage of the 100 percent bonus? Not necessarily. For many businesses there is an alternative that is not going away, and this alternative can be as good as bonus depreciation: IRC Section 179 expensing.


Home-Office Deduction—Pool Table in the Room

Does the pool table located in the room you use for a home office destroy the home-office deduction, or can you exclude the square footage occupied by the pool table from the business square footage?


The Ship Has Not Sailed on Qualified Opportunity Zone Investments

Some of the tax benefits of the federal qualified opportunity zone program have expired, but investing in qualified opportunity funds can still provide significant tax deferral and tax reduction for all types of capital gains.


Can Rental Income Terminate My S Corporation?

At a meeting of landlords, the guest lawyer stated that the S corporation terminates with too much passive income. Many attendees heard this comment incorrectly. The too-much-passive-income termination problem applies only to certain S corporations.