The IRS Figures Out The Real Estate Professional Rules – Part 2

Tweet Two Grouping Elections When a you have one activity under the meaning of Section 469—whether it be a rental property or a partnership or S corporation interest– materially participating in the activity requires 500 hours of your time (assuming you don’t want to have to consider the hours of any other person participating in [...]

The IRS Figures Out The Real Estate Professional Rules – Part 1

Tweet Qualifying as a real estate professional has long been a boon to taxpayers who would otherwise be limited in the losses they could deduct from rental activities. More recently, meeting the standards of a real estate professional became important even when a taxpayer generates net rental income, because only real estate professionals can exclude [...]

Congress passes tax extender legislation on December 12th, 2014

Tweet The Senate passed a bill to retroactively extend more than 50 expired tax provisions through 2014, by a vote of 76–16 on Dec. 12 evening. The extender bill passed the House of Representatives on Dec. 3, and it now goes to President Barack Obama for his signature. The Joint Committee on Taxation estimates that [...]

Partnerships: Two’s Company?

Tweet Can partners be employees? And should they? The answer, as in many other areas of the tax law: it depends. IRS Revenue Ruling (RR) 69-184 states, “Remuneration received by a partner from the partnership is not ‘wages’ with respect to ‘employment’ and therefore is not subject to the taxes imposed by the Federal Insurance [...]

Expired Tax Breaks in 2013

Tweet Tax benefits for individuals and small businesses that expired in 2013 could have an impact on as many as one in six taxpayers, according to a new analysis. An analysis estimates that five of the more popular expired tax breaks benefiting individuals delivered more than $87 billion in tax benefits in 2013. These benefits, [...]

Year-End Gifting Rules Revisited

Tweet The Internal Revenue Service is reminding individuals and businesses making year-end donations that several important tax law provisions have taken effect in recent years regarding gifting. Charitable contributions of clothing and household items Household items include furniture, furnishings, electronics, appliances and linens. Clothing and household items donated to charity generally must be in good [...]

5 Musts for Small Businesses

Tweet According to the Small Business Administration, small businesses make up 99.7 percent of all U.S. employers. Nearly 50 percent of revenue earned by locally owned businesses is re-circulated through the local economy, according to data from the American Booksellers Association and Civic Economics. Below are five recommendations to help guide startups down the path [...]

2015 Standard Mileage Rates

Tweet SECTION 1. PURPOSE This notice 2014-79 provides the optional 2015 standard mileage rates for taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes. This notice also provides the amount taxpayers must use in calculating reductions to basis for depreciation taken under the business [...]

Top Four Year-End IRA Reminders

Tweet Individual Retirement Accounts are an important way to save for retirement. If you have an IRA or may open one soon, there are some key year-end rules that you should know. Here are the top four reminders on IRAs from the IRS: 1. Know the limits. You can contribute up to a maximum of [...]

Fixed Asset Allocation: Why It’s Important

Tweet Fixed assets are a key resource for small businesses and can represent a major portion of the net worth captured on the balance sheet. Recording, maintaining, and reconciling the fixed asset account is vital because errors can lead to inaccurate valuation of a business or incorrect tax reporting — potentially affecting investors, lenders, and [...]

Tweet Learning how to make an invoice for each customer, then manage and track all outstanding and paid invoices may seem like a dull and time-consuming activity for business owners. However, a robust system is critical to keeping cash flowing through businesses of all sizes. Without a regular and smoothly operating invoicing system, cash flow [...]

IRS Releases Official 2014 Tax Rate Brackets, Standard Deductions, Other Inflation-Adjusted Figures

Tweet The IRS and the Social Security Administration have released various inflation-adjusted figures for 2014. While delayed slightly by the government shutdown, these figures were released considerably sooner than many of the 2013 figures which were not released until this past January because of the late passage of the American Taxpayer Relief Act of 2012 [...]

How Long Can IRS Audit? It All Depends On You

Tweet In most cases, the IRS has three years after you file to audit. If the IRS shows up after that, you may be able to point out that the statute of limitations has run. It’s better than hunting for receipts! But there are many special rules that can extend the purgatory. First, the three [...]

Facts about Health Coverage Exemptions

Tweet The individual shared responsibility provision of the Health Care Law requires you and each member of your family to: • have qualified health insurance, also called minimum essential coverage, • have an exemption, or • make a shared responsibility payment when filing your federal income tax return. Many people already have qualifying health insurance [...]

Subscribe to RSS Feed Follow me on Twitter!