News

The government does not want you to withdraw money from your IRAs and other retirement accounts before age 59 1/2. To deter early withdrawals, the government imposes a 10 percent penalty tax, in addition to regular income tax in the case of tax-deferred accounts. But what if you want...

I’m reaching out to remind you of two important issues related to health insurance deductions for S corporations. First, if you own more than 2 percent of an S corporation and provide health insurance coverage, there are three steps you need to follow to claim a deduction: Second, this...

We are writing to update you on the latest developments in 2023 health insurance for S corporation owners. As a more-than-2-percent S corporation owner, you are entitled to some good news when it comes to your health insurance. To ensure that your health insurance deductions are in order and...

As you are likely aware, if you have an IRA or other tax-deferred retirement account, you must start taking required minimum distributions (RMDs) once you reach a certain age. The SECURE 2.0 Act raises the age at which RMDs must first be taken, from age 72 to 75, over...

In 1986, lawmakers drove a stake through the heart of your rental property tax deductions. That stake, called the passive-loss rules, causes myriad complications that now, 37 years later, are still commonly misunderstood. The Trap In 1986, lawmakers made you shovel your taxable activities into three basic tax buckets....

I wanted to provide an update on the status of the proposed regulations from the IRS regarding tax deductions for payments made to health care sharing ministries. On June 10, 2020, the IRS issued a proposal to treat these payments as payments for health insurance. However, this proposal was...

I hope this letter finds you well. Today, I would like to introduce a new business strategy that can help you build net worth by using depreciable antiques in your business. The strategy is simple: buy low, depreciate to zero, and sell high. You can achieve this by incorporating...

I have to share the highlights of this tax case with you. Steven Hoakison took his case to court, where the IRS asserted that To push its no-business-purpose position, the IRS noted that 37 of the 40 tractors in dispute were more than 40 years old at the time...

The real estate boom appears to be over for now. Morgan Stanley predicts that house prices could fall by 10 percent by the end of 2024, perhaps twice as much in a worst-case scenario. Homeowners who purchased their homes at the top of the market could be in trouble,...

Do you owe self-employment tax on Airbnb rental income? That’s a good question. In Chief Counsel Advice (CCA) 202151005, the IRS opined on this issue. But before we get to what the IRS said, understand that the CCA’s conclusions cannot be cited as precedent or authority by others, such...

I see that you are using IRS mileage rates to deduct the cost of your business vehicle. I have a new tool that can tell us whether the mileage rates are a good deal for your taxes. With this tool, I look at the entire life of your vehicle,...

As you likely know, the Section 1031 tax-deferred, like-kind exchange is one of the greatest wealth-building mechanisms for real estate investors. With Section 1031, you can avoid taxes on all your property upgrades during your lifetime and then pass the property to your heirs when you die. The heirs...