Losing personal property to disaster or theft can be traumatic, especially if it is a home, vehicle, or prized family heirloom. Even though in some cases replacement of lost property is impossible, the Internal Revenue Service provides a means by which theft or disaster-related property loss (also known as “casualty loss”) can be claimed and…
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A taxpayer can overcome the presumption that all rental activities are passive if the taxpayer qualifies as a real estate professional by satisfying the two tests of Sec. 469(c)(7)(B): More than one-half of the personal services performed in trades or businesses by you during the tax year are performed in real property trades or businesses…
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Paying income taxes is the obligation of all Americans. While we are happy to pay our fair share, no one wants to pay too much income tax. That is where tax deductions and credits come into play. U.S. Congress has written the tax code; all 4 million words of it; to allow individuals and businesses…
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One of the more popular uses of the Section 179 Deduction has been for vehicles. In fact, several years ago the Section 179 deduction was sometimes referred to as the “Hummer Tax Loophole,” because at the time it allowed businesses to buy large SUV’s and write them off. While this particular use (or abuse) of…
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According to the IRS, your property is placed in service when it is both ready and available for rent. If you recently purchased a property you hope to rent out for passive income, this is critical information for you. You ideally want to have the property “in service” to reap the best tax benefits. Usually,…
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