Recent Developments May Affect Passive Investors with Losses

Recent Developments May Affect Passive Investors with Losses

Do you materially participate in a business or rental activity — or are you just a passive investor who isn’t directly involved in a project’s day-to-day operations? The IRS has prescribed seven tests to help individuals classify income, gains and losses from activities as passive or nonpassive. (See “PAL Basics” below.) The passive activity loss … Continued

Make Your Hobby a Business…Carefully

Many people dream of making money pursuing a favorite hobby. By starting a sideline business, you could be eligible for a treasure chest of tax deductions. If you follow certain rules, you can deduct the expenses related to your venture, including equipment, advertising, subscriptions and business-related auto costs. You might even be able to claim … Continued

Give Business Stock to Your Children and Save Taxes

As you know, the federal income tax rates on qualified dividends and long-term capital gains are much lower than the tax rates on so-called ordinary income (such as salary, bonuses, self-employment income, short-term capital gains and interest income). The tax-rate differential provides a great tax-saving strategy that involves your family C corporation — assuming the … Continued

Catch-Up Contributions

Only 18 percent of individuals 55 and older say they are “very confident” they will have enough money to live comfortably throughout their retirement years. At the same time, 24% were not at all confident.1    In 2001, Congress passed a law that can help older workers make up for lost time. But few may understand how … Continued

5 Common Mistakes Pre-Retirees Make

Retirement preparation shifts into a higher gear the closer an individual approaches his or her retirement age. Unfortunately, many individuals can make crucial mistakes in these last few years that might impact their readiness to retire. 1. Paying Down Your Mortgage Conventional wisdom says that individuals should have little to no debt as they enter … Continued

TIPS for Inflation

In 2014, the country1  the Fed governors are tasked with adjusting short-term interest rates to help control inflation in an effort to promote overall economic growth. the historic appointment of Janet Yellen as Chair of the Board of Governors of the Federal Reserve System. She became the first woman to take the helm of … Continued

Points to Consider Before Making Gifts to Children

In the world of college financial aid, good estate planning strategies often result in less financial aid for your child or grandchild. For instance, a strategy included in many estate plans involves making annual tax-free gifts to children. Annual gifts can be made, up to $14,000 or $28,000 if the gift is split with your spouse, to … Continued

Relying on Audit Techniques Guides

IRS examiners usually do their homework before meeting with taxpayers and their professional representatives. This includes reviewing any relevant Audit Techniques Guides (ATGs) that typically focus on a specific industry or audit-prone business transaction. Though designed to help IRS examiners prepare for audits, ATGs are available to the public. So, small business taxpayers can review … Continued

Transparent Appraisals: A Key to Customer Satisfaction

The automobile dealership industry has undergone a transformation in recent years with the availability of online used car values. Armed with this information, your customers are driving harder bargains and that translates into smaller profit margins for your dealership on both new and pre-owned sales transactions. Combine this with the fact that many dealerships are … Continued

Consider Section 179 Deductions for Real Estate Expenses

The Section 179 deduction for qualified real property expenses was made permanent under the Protecting Americans from Tax Hikes (PATH) Act of 2015. However, claiming this deduction isn’t a no-brainer. Here are the pros and cons.   Deductions for Qualified Real Property Costs Not too long ago, real property costs weren’t eligible for the Sec. … Continued