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 do not need an LLC to start a business, but for many businesses the benefits of an LLC far outweigh the cost and hassle of setting an LLC up. An LLC, or limited liability company, provides personal liability protection and a formal business structure. You can also get those things by forming a corporation…
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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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Effective Management of Business Finances Most small business owners and entrepreneurs juggle every aspect of business management, from administrative tasks to bookkeeping and accounting duties. Many small business owners and entrepreneurs reach a point where managing every task becomes overwhelming and an ineffective use of time. Effective management of business finances is critical for reporting,…
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Fortunately for investors, there is a way to avoid paying both capital gains and depreciation recapture tax on the profitable sale of any investment property. This is known as a 1031 exchange, which means that if you sell one investment property, but use the proceeds to acquire another, you can defer paying taxes on the…
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Buying a home with stock still requires that you pay capital gains tax. Paying taxes on stock gains is unavoidable whether or not you plan to use your gains as a down payment on a house. The tax rate on long-term capital gains, the stocks you held onto for more than one year, is lower…
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Good records will help you monitor the progress of your business, prepare your financial statements, identify sources of income, keep track of deductible expenses, keep track of your basis in property, prepare your tax returns, and support items reported on your tax returns. You may choose any record keeping system suited to your business that…
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