Archive for the ‘USATaxAid Blog’ Category

Form 1099-A From Dumping Bad Real Estate

The real estate downturn is still affecting taxpayers. If you lose or turn back a property, you’ll get a Form 1099-A.  This may be all you get if the fair market value (FMV) covers the debt you owe, if you clearly qualify for a tax exemption (bankruptcy or principal residence) or if the lender just ...

The MERP is Still the Best Way to Write Off Medical Expenses

How do you write off medical expenses? It used to be you could use a cafeteria plan to pay for medical expenses pre-tax. The Affordable Care Act of 2010 limited the amount you could pay that way. That left itemizing deductions, which are limited based on your adjusted gross income. There is one more solution, ...

Which is Better: An S Corp or a C Corp for Deductions?

Got a tax question? We’re happy to help. You can become a client, you can get a consultation or (the free solution) you can go to USTaxAid.com to ask your questions and I’ll answer it in a blog. Here’s a question I recently received: “Any difference in buying a business car into my LLC-S verses ...

Wrong Form 1099-C – Now What?

Form 1099-As and Form 1099-Cs came back on tax preparer’s radar in 2006, 2007, 2008 when we saw people start to lose their properties to foreclosure, deed-in-lieu of foreclosure, short sale or, at least in the early years, had the principal amount reduced through loan modifications. You get a Form 1099-A when a property is ...

New 2013 Rules For Selling Your House For No Tax

It’s March 2014, and I was shocked at something I found on the Internet today. There are lots of articles about how to sell your house for no tax. And unfortunately, 90% of them are wrong. In fact, “Real Estate Loopholes” which I wrote back in 2004, is wrong too. That’s why it is so ...

Best Way to Set Up For No or Low Tax When You Sell

Real estate is heating up again. And that means planning for gain when you sell. That’s why today’s question is so timely: “I may be selling my home and buying a new one.   Is there a way to title the home (trust / LLC / ?) to avoid transfer issues later (inheritance and also Obamacare ...

Sole Proprietorship or S Corp?

One of the most important questions a business owner will ask is, “What’s the best business structure?” The answer, of course, is “It depends.” Some of the factors to consider include:  your business income/loss, your tax bracket without the business income, your exit strategy, your funding strategy, how risk averse you are and how simple ...

Question About Series LLC Accounting

If you have multiple real estate properties or are a serial entrepreneur, a Series LLC may be right for you. In the right circumstances, they can mean more privacy, less cost and much simpler set-up procedures. But if you’re in the wrong state (California) or set them up incorrectly, it can cause way more trouble ...

IRA Investing Gone Wrong

I am so glad that I got this question at USTaxAid.com.  I hope that my answer is in time so that the writer doesn’t do something drastic and costly. Here’s the question:  “Can the LLC/1120S file K-1’s to the IRA holders even though they’re NOT members/shareholders?” Here are some of the issues with the question: ...

Question about IRA LLC

I got a question at USTaxAid.com about how to administer an IRA LLC. Actually the post had several questions incorporated. I’m not going to answer the question, at least not right away. That’s because the beginning explanation had a major problem. Here’s how the question started: “My question is regards a single-member LLC for the ...