Archive for the ‘Tip Of The Day’ Category

How Do the Rich Qualify for the Real Estate Professional Deduction?

If you make less than $100,000 per year and actively participate in your real estate, you can take up to $25,000 of real estate loss against your other income. If you make over $150,00 per year, then you can’t take any of the loss against your other income. If your income is between $100,000 and ...

Real-Life Real Estate Professional Audit Issues

In order to take the real estate professional deduction, you have to have more real estate activity hours than any other business and a minimum of 750 hours. Here’s a question we recently got at USTaxAid. Question: “I have a full time job & have documentation that I spend 1,450 at “work”. I also have ...

Tax Reporting for Real Estate Joint Ventures

It’s common for real estate investors, especially beginning ones, to join up with others on property investing. The problem comes when two or more people get together to invest and do it without a business structure. The default structure when a joint venture occurs without a formal structure is a general partnership. That means you’ll ...

10 Common General Real Estate Deductions

Your real estate deductions for your investment propertie will undoubtedly be different than someone else’s, but here’s a general list to get you started. Mortgage interest: The interest portion of your monthly payments is deductible. Property tax: The property tax that you pay in the calendar year is deductible. If you are playing catch-up with ...

Take Your Real Estate Deductions

The AICPA says that 80% of accountants don’t understand basic real estate accounting and tax. That means you need to either find the rare experienced real estate accountants or you’ll need to get educated yourself. Once you are in business with your real estate business, you can begin taking deductions. Normal deductions include home office, ...

5 More Common Deductions for Online Businesses

A new business can put money in your pocket before you even make a dime. That’s because you now get to take deductions you never did before if you worked just as an employee. Some common deductions for online businesses are: Advertising: Make sure you track the expenses for Google adwords and other advertising. It’s ...

5 Most Common Deductions for Online Businesses

One of the best things about having an online Internet business are the tax breaks you can get. Here are five common tax deductions for businesses: Home office: If you have a space in your home that is regularly and exclusively used for your business, you have a home office deduction. You don’t need to ...

Series LLC for Internet Businesses

Without a doubt, the most frequently asked question we get is “What’s the best business structure?” More and more, we’re looking at Series LLCs for business owners. In the right circumstances, these can give the ultimate in flexibility, privacy and cost savings. Here’s how it could work if you have Internet businesses or any other ...

Special Blogger Deduction

I’m a writer and that means I get to take advantage of a special writer’s deduction when I calculate my taxes. I get to write off anything that is related to something I am researching for a future article or book. Let’s say I decide to write a travel book and go to Tuscany to ...

Avoid this Stupid Mistake That Can Cost You the Deduction for People You Pay

If you have someone working for you, they are either an employee or an Independent Contractor. If they are an employee, that means you need to deduct payroll taxes from their checks and you need to pay that and additional payroll taxes to local, state and federal authorities. Plus you have monthly, quarterly and annual ...