News

Purchasing raw (unimproved) land can be a great way to get into real estate investing.  Raw land is ordinarily cheaper than land with buildings and other improvements. Moreover, you don’t have the expense of handling building maintenance and other upkeep, not to mention the headaches of dealing with tenants...

As you consider the process of shutting down your S corporation, it is crucial to understand the federal income tax implications that come with it. Here, I outline the tax basics for the corporation and its shareholders under two common scenarios: stock sale and asset sale with liquidation. Scenario...

I understand that you are considering offering your timeshare to your employees as an incentive for achieving specific revenue goals and are interested in how you can create a business tax-deductible treatment for the timeshare. Below, I outline two potential methods to help you achieve the desired tax deductions...

Were you self-employed during 2021? If so, there is a good chance that you could have qualified for COVID-19 sick and family leave credits worth as much as $32,220. If you’re like many self-employed individuals or partners, you probably never heard about these tax credits. Unlike employee retention credit...

Real estate options and leases with purchase options can enhance your real estate investment profits. Here’s a concise guide to help you navigate the potential pitfalls and maximize your returns. Stand-Alone Purchase Option A stand-alone purchase option can be highly profitable. Here’s how it works: Lease with Option to...

Early withdrawals from a traditional IRA before age 59 1/2 generally incur a 10 percent penalty tax on the taxable portion of the withdrawal. There are several exceptions to this rule that can help you avoid the penalty under specific circumstances. Below, I have outlined the key exceptions that...

One significant tax benefit of owning residential rental property or non-residential commercial or investment property is depreciation—a deduction you get without spending any additional money. But regular depreciation for real property is slow. Residential rental property is depreciated over 27.5 years and non-residential property over 39 years, providing a...

Self-employment taxes are substantial, and most people want to minimize them. Self-employed taxpayers often avoid self-employment taxes by operating as an S corporation. The distributions from the S corporation are not subject to self-employment tax. But Social Security and Medicare tax must be paid on the shareholders’ employee compensation...

When it comes to taxes, your ownership of a timeshare comes with some tax implications, and they depend on how you use the timeshare: Business use is a separate subject because you treat it separately under the business rules. You first deduct business use and then consider timeshare personal...

The IRS allows you to write off the old roof or component when you replace it on your rental property. The write-off of the old component creates three major tax benefits for you: Example Consider a building purchased for $4 million seven years ago. You replace the roof and...

As you consider shutting down your sole proprietorship or your single-member LLC treated as a sole proprietorship for tax purposes, it’s crucial to understand the tax implications of this decision. Here’s an overview of key points you need to consider. 1. Asset Sale Tax Implications When you sell a...

If you own a timeshare and use it only for personal and business lodging, you have a unique opportunity to maximize your tax benefits. Big Benefit The IRS allows timeshare owners who do not rent their property to claim deductions for business-related lodging without being subjected to the grim...