Blog Posts
Avoid This Family-Member S Corporation Health Insurance Mistake
There are two important issues related to health insurance deductions for S corporations. Issue One First, if you own more than 2 percent of an S corporation, there are three steps you need to follow to claim a deduction for health insurance:...
Are You a Regular Investor or a Tax-Favored Securities Trader?
As we navigate the recent volatility in the stock market, you may want to think about the possible favorable federal income tax treatment the tax code gives to a securities trader. What Are The Advantages? Suppose you can qualify as a...
Helicopter View of 2023 Business Meals and Entertainment
As you may already know, there have been some major changes to the business meal deduction for 2023 and beyond. The deduction for business meals has been reduced to 50 percent, a significant change from the previous 100 percent deduction for...
Holding Real Property in a Corporation: Good or Bad Idea?
As the real estate market has cooled off in many parts of the country, investing in real property may seem wise in the long run. But taxes can be a significant concern. C Corporation Owning real estate in a C corporation may not be wise when...
Rental Property Owners, Plan Your Passive Activity Losses for Tax-Deduction Relevance
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 - Rental...
SECURE 2.0 Act Creates New Tax Strategies for Required Minimum Distributions
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. SECURE 2.0 Act raises the age at which required minimum...
Health Insurance for S Corporation Owners: An Update for 2023
Here’s an update 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...
How to Section 1031 Exchange into a Delaware Statutory Trust
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...
Is Airbnb Rental Income Subject to Self-Employment Tax?
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...
When Cancellation of Debt (COD) Income Can Be Tax-Free
Sometimes debts can pile up beyond a borrower’s ability to repay, especially if we are heading into a recession. But lenders are sometimes willing to cancel (forgive) debts that are owed by financially challenged borrowers. While a debt...