By month: June 2024

Q&A: Dutch-Treat Business Meals

You can deduct the cost of Dutch-treat business meals in the same manner you deduct other business meals. But all business meals you consume can suffer from the Sutter rule. Learn more here.

Cost Segregation: A Great Strategy When?

Residential rental property is depreciated over 27.5 years, and non-residential real property over 39 years, providing a relatively small deduction each year. But property owners can use cost segregation to speed up the deductions by separately identifying, valuing, and depreciating the personal property and land improvements contained in their property. This can provide a substantial deduction in the first year, especially if bonus depreciation and/or Section 179 is used to deduct the full cost of these assets in one year.

Shutting Down a Sole Proprietorship

When shutting down a sole proprietorship or a single-member LLC taxed as a sole proprietorship, there are myriad tax rules to consider because the tax code says you are not selling the business, but rather selling the assets of the business.

Q&A: Who Should Own the Business Car: Corporation or Individual?

Here’s a common question: Who should own the business vehicle? You? Your corporation? If you just formed your corporation, it’s likely that the vehicle is in your name. How does your corporation deal with it? This article gives you answers.

Q&A: Don’t Rent Home Office to S Corporation

One common mistake the corporate owner makes is renting the corporate office in the personal home to the corporation. Learn why this is a mistake.

Adding Clarity: Replace Roof, Write Off the Old Roof

Find additional clarity on how you benefit when you take advantage of the relatively new IRS tangible property regulations that allow you to write off replaced components. In this article, we expand on the benefits of the two types of tax savings that we covered in last month’s article.

Self-Employment Taxes for Active Limited Partners

The tax code says that limited partners “as such” don’t have to pay self-employment tax on their share of partnership income—a substantial tax savings. For the first time, the U.S. Tax Court has held that this exception applies only to limited partners who are passive investors, not active participants in the partnership business.

Tax Guide to Timeshare Tax Deductions When You Rent It to Others

Your timeshare can easily qualify as a second home for the mortgage interest deduction if you don’t rent or attempt to rent it. Once you introduce rent into your timeshare equation, you trigger two tough rules: (1) a special mortgage-interest-deduction rule for the personal part of the timeshare, and (2) the dreaded vacation-home rental rules for the rental part.

Q&A: How the IRS Disappears Tax Refunds on Unfiled Tax Returns

The taxpayer in this article did not file tax returns for 10 years. During this time, he overpaid his taxes by at least $100,000. The good news is that he does not owe any interest or penalties. But there’s some really bad news, too.


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