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Information
Avoiding "Hobby Loss" or "Not-for-Profit" Classification
IntroductionThis article provides guidance to those concerned that their profit motivated trade or business activities remain deductible, particularly in those cases where losses have been generated in the past and/or are expected to continue to be generated in the future.The 3-out-of-5 year rule and taxpayer misconceptionsThe Internal Revenue Service (IRS) has established an administrative rule regarding their presumption of profit:An activity is presumed to have a profit motive if it produces a profit in at least 3 of the past 5 tax years including the current year. -Publication 535: Business Expenses, IRS, p.Read more…What is an "Ordinary" and "Necessary" Business Expense?
Introduction For a business expense to qualify as deductible it must be (1) connected to the taxpayer’s trade, business or profession, (2) be an “ordinary and necessary” expense of this trade, business or profession, and (3) be paid or incurred during the tax year for which the deduction is claimed. The first and third items are self-explanatory, but which expenses are “ordinary” and which expenses are “necessary?” Note that some courts have held that business expenses must not just be ordinary and necessary, but must also be “reasonable” in amount and in relation to the purpose or intent.Read more…The IRCS1031 Tax-Free Exchange - Calculating the Basis of Replacement Property
Introduction This article provides a very brief introduction to two different methods and approaches for the computation of the basis of replacement property receive in an Internal Revenue Code Section 1031 (IRC§1031) exchange. It should be noted that these methods are relatively “simple,” when compared to more complex IRC§1031 exchanges. This is because some may involve more than one classification of like-kind properties (e.Read more…Deducting the Home Office: For Itemizers and Non-Itemizers
Introduction The IRS provides numerous examples on a variety of topics, usually focused on what the taxpayer cannot do. This article covers some of the planning opportunities, focusing on what you can do to legitimately deduct your home office expenses and to maximize your home office expense deductions. The home office deduction is one of the least understood deductions.Read more…Deducting the Home Office: Who Cares About Recapture?
Introduction The home office deduction is one of the least understood deductions. Many taxpayers avoid the deduction, frequently on the advice of their tax accountant or attorney, for fear of an IRS audit or concerns over the recapture of depreciation when their personal residence is later sold. This article will provide a brief description of the tax savings components associated with the home office deduction for both itemizer and non-itemizer taxpayers and provide some net present value illustrations so that you can see the impact of the recapture of depreciation when your personal residence is sold.Read more…Congress May Crack Down on Homeowner Property Tax Write-Offs
If you've been writing off your property taxes on your federal income tax form every year, you may need to be more careful with your figures if the recommendations of a report are accepted and adopted into legislation by Congress. A congressional committee recently suggested that many homeowners have been deducting more property tax than they should from their taxes, which, according to the report, has been costing the government hundreds of millions of dollars every year.Joint Committee on Taxation ReportThe report was generated by the nonpartisan Joint Committee on Taxation (JCT), and proposes a way for the government to plug loopholes in the tax system.Read more…3 Tips For Getting The Most Out Of Tax Deductions
Hundreds of tax deductions that could be filed and claimed go unaccounted for each year. Unfortunately, it is just because people do not realize that they can take them that they do not. Yet, there are many ways in which you can insure that you are getting the most from your filing status, your business and you personal situation.Read more…IRS Releases Mileage Rates for 2007
One of the advantages of working for yourself is you can write off a lot of different expenses to lower your taxable earnings. One deduction that is very popular is business mileage. Any mileage you undertake for business purposes can be converted into a very healthy tax deduction.Read more…Tax Problems – Procrastinate At Your Peril
If you are an American, you have to pay taxes. Sometimes it seems like you get it in the pants…err, bank account coming or going. If you get behind on your taxes, things can get a bit more stressed.Read more…Click your business with web based accounting
Web based accounting is an easy way to keep the track of financial transactions on a regular basis as it consumes less time and also prevents a person from maintaining conventional bookkeeping ledgers.Read more…Outsourced accounting: make things easy
Outsourced accounting is a simple way that will help you to handle the finance related aspect of your businessRead more…Accounting Outsourcing Services Help in Saving the Company Resources
Accounting outsourcing services help the business in maintaining up to date financial accounts at all time.Read more…Take your business places with accounting outsourcing in India
Accounting outsourcing in India makes quite a sense to various companies as they get detailed accountancy records and moreover earn great profits. Hence it is short cut for getting success in their business.Read more…Steer Clear Your Accounting Goof Ups Via Tax Return Outsourcing
Tax return outsourcing is a best possible way to get rid of undesired accounting mishappenings as it offers efficient and accurate services.Read more…Accounting Outsourcing Services: a Perfect Business Strategy
Use accounting outsourcing services to make sure that your accounting work is handled efficiently.Read more…Save Your Soul with Tax Return Preparation
Tax return preparation helps you to save time and avoid any problem that you might face if you do not file it on time.Read more…Tax Return Outsourcing is Indeed a Friend in Need
Tax return outsourcing helps you to file your tax return on time.Read more…Tax Return Online-Makes life easy
Online tax return is an easy way to return your tax.Read more…Texas Property Tax Appeals
Texas appraisal districts typically recognize one of three different approaches to determine market value when granting reductions in property tax assessments. Those approaches are Sales Comparison Approach, Income Approach, and Cost Approach. In addition, recent court rulings have paved the way to encourage more districts to also recognize the Uniform and Equal Approach (unequal appraisal) to valuing the property as provided in the Texas Property Tax Code. Analyze both market value and unequal appraisal when preparing for your Texas property tax appeal. Read more…VAT Refund: Why You Should Get Professional Help To Reclaim VAT
Large amounts of value added tax (VAT) on purchases made in Europe go unclaimed by companies each year. The main reason is that many companies are unaware they can reclaim VAT on purchases made outside their own countries.Read more…
Most Recent Articles in Taxes category
- Texas Property Tax Appeals - By: Patrick C O Connor
Texas Property Tax Appeals Steps to Protesting and Reducing Your Property Value Annually - Taxes - By: Patrick C O Connor
Taxes are a levy imposed upon people or legal entities by a governmental entity. There are many forms of taxes including income taxes, property taxes, capital gains taxes, consumption taxes, excise taxes, retirement taxes, sales taxes, tariffs, toll taxes and transfer taxes. This article focuses on reducing income taxes for real estate owners. - Gift Tax Valuations - By: Patrick C O Connor
Gift tax valuations are prepared for many reasons. Gift tax includes market value of gifts to charity, market value of conservation easements and gifts in excess of annual limit. Well-reasoned planning of gifts can minimize gift taxes, income taxes, and estate taxes. - Please keep your hands out of my pockets Uncle Sam!: Business tax savings you should know about. - By: Amar Brown
Many people are unaware that a business including a home based business can mean thousands of dollars in tax advantages per year. Thousands that you can put back into you pocket. Here are a few tips on keeping Uncle Sam Out of your pockets and keeping more of your hard earned money in. - Cost segregation - correctly depreciation real estate 10 - By: Patrick O'Connor
Depreciation is an important non-cash tax deduction. By increasing tax deductions, commercial property owners affect federal income tax reduction. The increase in tax write-offs generates such a large tax cut that some wonder if it is a tax shelter or tax evasion scheme. It is not. Cost segregation is an IRS-guided process used to increase tax deductions during the tax preparation process. The IRS has provided a detailed explanation of the items that qualify for short-life depreciation and acceptable methodologies for performing a cost segregation study. Cost segregation studies performed by appraisers in compliance with the IRS's Audit Techniques Guide are unlikely to be challenged in an audit. Commercial real estate owners seeking tax advice and tax relief can benefit from reviewing the tax relief available from cost segregation. - Estate Taxes - By: Patrick O'Connor
Estate txes are often referred to as the death tax. Few Americans are subject tp estate tas due to the exclusion on the first$2,000,000 of an estate (2006,2007, and 2008). Taxpayers with estates substantially in excess of this amount should consider planning to minimize estate taxe. For family businesses it is important to ensure adequate liquidity is available to pay estate taxes. For family businesses it is important to ensure adequate liquidity is available to pay estate taxes (so the business does not have to be sold to pay the taxes). - Tax Deferral 1031 Exchanges and Cost Segregation - By: Patrick C O Connor
Tax deferral through 1031 exchanges, or tax-free exchanges of real estate, have become a popular method of tax deferral of capital gains taxes. Almost by definition, individuals who utilize the 1031 exchange option are reluctant to pay taxes that can legally be avoided. 1031 exchangers have asked if they can receive tax deferrals and enhance depreciation. - Tax deductions - A result of Cost segregation - By: Patrick C O Connor
Tax reduction and tax deferral are the primary benefits of obtaining a cost segregation study. Income taxes are a substantial burden for most real estate investors. Tax deductions help with this burden. While some level of taxation is necessary, it is both inappropriate and imprudent to pay more than your fair share. - Capital Gains Tax Loopholes Shrinking - By: Carol Freyer
Seems the new 2008 housing bill was not a savior for all of us - like a scorpion there is a little kick in the tail! However, struggling home owners can breathe easy, the kick is not directed at them, in fact, it is aimed at real estate investors. - Tax Loopholes of the Rich - By: Aus Mark
There are only two types of tax payers; those that play the game and those that don't.