By month: June 2019

Know These Tax Rules If Your Average Rental Is Seven Days or Less

If you own a condominium, cottage, cabin, lake or beach home, ski lodge, or similar property that you rent for an “average” rental period of seven days or less for the year, you have a property with unique tax attributes. For example, it’s not a rental property under the tax law, but it does produce either taxable income or a tax-deductible loss.

Q&A: QBI and Self-Employment Tax Savings for S Corp. as a Partner

It’s common to consider making your S corporation (versus yourself) a partner in your partnership: it saves you self-employment taxes. Does this affect your Section 199A deduction? We’ll explain how it does, what that means, and strategies for you to make things better.

Tax-Saving Double Play: Combine Home Sale with the 1031 Exchange

You don’t often get the opportunity to even consider making a tax-saving double play. But your personal residence combined with a desire for a rental property can provide just such an opportunity, as you learn in this article.

Q&A: The IRS Audit Is Wrong on First-and-Last-Stop Rule

In this IRS examination, the examiner mistakenly applied the first-and-last-stop business commuting rule. We explain what the IRS got wrong and what documents can be used to overturn the IRS’s decision.

Avoid This Super-Costly Mistake with Your Payroll Taxes

Is your last payment of payroll taxes in the hands of the IRS or in the hands of an embezzler? How would you know? There’s one easy way to know: simply use the IRS’s online service to check. But that’s a bit of trouble, so why bother? Because if the money has been stolen, you (1) are out the original money and (2) now have to pay a duplicate amount to the IRS. If you have to pay twice, you are going to be furious. Don’t let this happen.

Avoid This S Corporation Health Insurance Deduction Mistake

If you own more than 2 percent of an S corporation, you have to follow special rules to deduct your health insurance premiums. The health insurance rules can also apply to family members who work in the business and don’t own a single share of stock. Don’t let the zero stock be a surprise and cost your family money.

Q&A: Making Rental Property Work with the Section 199A Deduction

You’ll find much to love about the new Section 199A tax deduction when you qualify for it. One area where you can find mass confusion is with rental properties. To avoid much of this rental property muddle, download the special report you find in this article.

Q&A: Can the IRS Require Odometer Readings with the Mileage Rate?

What proof of mileage do I need if I’m using the IRS standard mileage method? Can the IRS require me to provide odometer readings as proof?

Update on New Court-Approved Way to Defeat IRS Penalties

The Tax Court gave you a brand-new penalty relief strategy back in December 2017. Since then, both the Tax Court and the IRS have told us more about how they view tax code Section 6751(b). In this article, we update you on the most recent tax cases relating to your use of Section 6751(b)—and one of them is a big help to you in your battle against IRS penalties.


[ View / Print full text of all articles in this issue ]