Can Real Estate Professional Status Free Up Old Passive Losses?

Can Real Estate Professional Status Free Up Old Passive Losses

Deducting your rental property tax losses against your other income is tricky, as you likely know. You have to get the tax law to treat you—say, a computer engineer—as a tax-code–defined real estate professional. Let’s say you get there. Does that status allow immediate use of suspended passive losses? Unfortunately, the answer is no. Here’s […]

Tax-Free Home Sale: When and Why You Need to Report to the IRS

Tax-Free Home Sale When and Why You Need to Report to the IRS

You’re probably aware that when you sell your home, you may exclude up to $250,000 of your gain from tax if you’re unmarried (or married, filing separately) and $500,000 if you are married and file jointly.  To claim the whole exclusion, you must have owned and lived in your home as your principal residence for […]

Are you a Real Estate Dealer or Investor?

Are you a Real Estate Dealer or Investor

If you buy and sell real estate, you need to know the difference between being classified for tax purposes as a real estate dealer versus a real estate investor. Real estate dealers are in the business of buying and selling real property—property is their inventory.  Real estate investors own property primarily to earn income from […]

2024 Year-End Strategies for Crypto Investors

Tax Credits for EVs What's New (1)

If you’re in the market for a new car, the federal government would like you to purchase an electric vehicle (EV) or plug-in hybrid EV (PHEV).  In 2022, Congress enacted the Inflation Reduction Act, which revamped and expanded tax credits for EVs purchased during 2023 and later.  As a result of the new law, there […]

2024 Year-End Strategies for Crypto Investors

2024 Year-End Strategies for Crypto Investors

2024 has been a great year for investors in cryptocurrency, with Bitcoin reaching all-time highs. With high profits can come high taxes. Fortunately, there are several strategies you can employ before year-end to reduce your 2024 crypto taxes. If you invested only in Bitcoin, you may not have any crypto losses.  But you could have […]

Game On: TCJA Winners and Losers – Business on the Chopping Block

Game On: TCJA Winners and Losers - Business on the Chopping Block

Prepare for tax changes. The Tax Cuts and Jobs Act (TCJA) has been part of our tax landscape for nearly seven years, shaping how businesses and individuals plan their finances. As we approach the end of 2025, when many key provisions expire, here are some critical changes that could affect you and your business. Expiring […]

2024 Last-Minute Year-End Tax Strategies For your Stock Portfolio

2024 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 2024 income taxes. The tax code contains the basic rules for this game, and once you know the rules, you can apply the correct strategies. Here’s the gist: Avoid the […]

2024 Last-Minute Vechicle Purchases to save on Taxes

2024 Last-Minute Vechicle Purchases to Save on Taxes

Here’s an easy question: Do you need more 2024 tax deductions? If the answer is yes, continue reading. Next easy question: Do you need a replacement business vehicle? If so, you can simultaneously solve or mitigate the first problem (needing more deductions) and the second problem (needing a replacement vehicle) if you can get your […]

2024 Last-Minute Year-End General Business Income Tax Deductions

Year-End Tax Planning Services

The purpose of this letter is to reveal how you can get the IRS to own you money. Of course, the IRS will not likely cut you a check for this money (although in the right circumstances, that will happen), but you’ll realize the cash when you pay less in taxes. Here are six powerful […]

Got IRS Penalties? Know the Rules, Pay Nothing

Got IRS Penalties Know the Rules Pay Nothing

If the IRS has recently billed you with the claim that you owe a penalty for late filing, late payment, or missed employment tax deposits, I urge you to pause before making any payment. You may not have to pay that penalty at all. The IRS often imposes steep penalties for filing tax returns late, […]

Tax Planning to Winter in Florida and Summer in Massachusetts

Tax Planning to Winter in Florida and Summer in Massachusetts

You can plan your tax-deductible business life to avoid cold winters and hot summers. Spend a moment examining the following four short paragraphs containing the Andrews case’s basic facts.  For six months of the year, from May through October, Edward Andrews lived in Lynnfield, Massachusetts, where he owned and operated Andrews Gunite Co., Inc., a […]

Employee Retention Credit (ERC) Update

Employee Retention Credit (ERC) Update

Here’s a recent update on the Employee Retention Credit (ERC) and the new IRS payback scheme. New IRS ERC Payback Program The IRS introduced a second ERC Voluntary Disclosure Program for 2021 claims. Under this program, you can say, “I didn’t deserve the ERC, so I’ll repay 85 percent of my claimed ERC and retain […]