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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...

If you want to convert your home to a rental property, you can improve your tax benefits by selling it to your S corporation. Benefits of Selling Your Home to Your S Corporation Addressing Common Doubts Implementation Steps Conclusion Selling your home to your S corporation before converting it...

The IRS in its repair regulations gives you a partial disposition election that benefits you when you replace a structural component such as a roof on your office building or rental property. Previously, when you replaced a structural component such as a roof, the old roof’s remaining depreciation continued...

When you own and operate a business, you must exercise vigilant oversight, including watching over your payroll taxes. Here’s an example of why. Rodney Taylor entrusted his corporation’s accounting and bookkeeping to Robert Gard, CPA. Over several years, Mr. Gard embezzled between $1 million and $2 million, including payroll...

As you consider winding down your partnership, here’s a concise overview of what you might expect under three typical scenarios of partnership dissolution. Scenario 1: One Partner Buys Out the Others If one partner buys out the others and continues the business, the exiting partners will likely recognize a...

You may have heard you cannot claim a home-office deduction without business income. That’s not accurate, as I explain below. Points to Consider Action Steps Conclusion Your home office can provide significant tax advantages, even when your business income is low or non-existent. Make sure you position yourself to...

As you may know, the IRS requires that anyone claiming the 2020 employee retention credit (ERC) adjust their 2020 wages on their tax returns accordingly. It appears that the IRS has not yet processed your ERC claim. Despite the uncertainty of the timing of the credit’s approval, it’s crucial...