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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You are running your very own online e-commerce store; How exciting, but e-commerce sales tax laws, not so much. We know sales tax can really kill your energy. This blog will better explain the various sales tax rules for e-commerce businesses. When must your E-Commerce business start Administering sales tax? Your eCommerce business must charge…
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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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Accountable Plans A plan under which an employee is reimbursed for expenses or receives an allowance to cover expenses is an accountable plan only if the following conditions are satisfied: there must a business condition for the expenses the expense must be in connection with performance of services as an employee the reimbursement must be…
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If your small business regularly uses independent contractors or just hires a gardener occasionally, you may need to file a Form 1099-MISC with the IRS. 1099-MISC’s help the IRS prevent tax evasion by creating a record of income that may otherwise go unreported. For that reason, there are steep penalties, including fines up to $550…
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Did you know that if you are a US citizen and you are earning any income from streaming you might be on the responsible for paying taxes on the donations you receive? Despite their misleading name, donations are not tax free like the kinds of donations you give to a charity. They are taxable income!…
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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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If you are self-employed, your deduction for the business use of your vehicle could reduce your tax bill by thousands of dollars! Tracking your mileage is absolutely necessary whether you use the actual expense method or standard mileage allowance for claiming the deduction. Two Methods for Claiming the Car Deduction: Actual expense method Mileage allowance…
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