Under the trade or business rule, your rental property profits can create the deduction. And now, under an alternative rule, you can use the newly created IRS safe harbor to make your rentals qualify for the deduction. When you meet the new safe-harbor rules, the IRS...
Over the years, we’ve come across many small-business owners and tax advisors who believe that a home office is not deductible unless it’s the only place of business. The IRS says “you can have more than one business location, including your home for a single...
Qualified business income (QBI) deduction is available for a sole proprietorship, partnership, S corporation, and certain trusts, estates, and rental properties. The tax code says QBI includes the net dollar amount of qualified items of income, gain, deduction, and...
Why is the home-office deduction so important? Is it really that different from other business deductions? The answer is YES! Two Reasons There are two reasons why this deduction is important for every single business owner and is in a class of its own:1. It’s...
The first good news is that you can be both real estate investor and real estate dealer with respect to your real estate portfolio. The next good news is that you are in control, and by knowing just a few rules about dealer and investor classifications, you can do...
Today’s tax law puts your income and deductions into three separate buckets for tax purposes. Each bucket has its own rules and regulations. These are the three buckets: active, passive and portfolio. A real estate rental is automatically in the passive bucket if you...
