By month:August 2017

The Gambler’s Tax Guide—How to Protect Your Winnings from the IRS

If you win big at the casino, the government is going to ask for its share of the proceeds. Gambling income is taxable, and casinos must, by law, report big wins to the IRS. But the law provides you a way to offset your gambling income and thereby reduce your taxes. You just have to know the rules, including whether you are a professional or amateur gambler, and keep the right records.

Heavy Vehicle + Deductible Home Office = Major Tax Savings

As a small-business taxpayer, you likely have control of your business. With control, you can do much to increase your tax benefits with a qualifying heavy vehicle and a certain type of office in your home. So, if you’re looking for some major tax savings this year, you will find a path to them in this article.

Q&A: Tax Deduction for NFL Tickets

You can deduct NFL tickets under the associated entertainment rules. In this Q&A, our member is traveling from Portland to Atlanta to attend a business conference, and while at that conference, he and his team members will attend the NFL game. The conference creates an easy path to this deduction.

Marijuana Taxation: Don’t Let Your Cash Go Up in Smoke!

The legal marijuana industry is booming across the U.S. But there are tax problems: since marijuana is still a federally controlled substance, selling it comes with costly federal tax consequences. The good news is that with knowledge of the law in this area and some planning, you can cut the tax bill that Uncle Sam would otherwise send you.

Beware: Selling to a Related Party Can Kill Your Tax Losses

You need to know how the related-party rules work if you don’t want to destroy your tax-loss deductions. You are reading this right: you can lose your tax losses when you sell to a related party.

Q&A: Tax Deductions for Home-Office Lawn Care

When is it possible for the home-office deduction to include a percentage of lawn care and related landscaping expenses? Answer: As explained below, your use of the home office needs to create a qualifying business reason for a good-looking lawn.

Arguing with the IRS: You Need Tax Authority (Part 1)

Sometimes you and the IRS disagree about an item on your tax return. When that happens, you need authority on your side to either win your case or avoid a penalty if you don’t win. The Internal Revenue Code and certain IRS interpretations of it can be that authority, and we discuss them here.

Buying a Business with Co-Owners? You Need a Buy-Sell Agreement!

If you are buying a business that will include more than one co-owner, you need a buy-sell agreement—period. You have multiple reasons to put the buy-sell agreement in place and not one reason not to have a buy-sell agreement. But when you start to put the agreement in place, you need to consider the planning strategies in this article.

Passive Losses Don’t Destroy Your Tax-Favored Capital Gains

Suspended passive activity losses come about when the losses from all passive activities for the taxable year exceed the aggregate income from all passive activities for such year. These are losses above or beyond what you can deduct under the $25,000 offset for rental activities. When you sell your entire interest in a passive activity at a gain, you have a taxable gain and a jailbreak of those losses and maybe more.

 

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