Providing their usual timely and efficient service, Congress has finally moved to extend several tax provisions which expired at the beginning of the year. H.R.5771 was passed by the House on December 3, 2014, and was just approved by the Senate on … [Read more...]
Tax Deductions: Avoiding the IRS Hobby Loss Restrictions
Do you have a job or own a primary business, but also have another business activity on the side? If the side business generates losses, you might not be able to use those losses against other income if the IRS determines that the side business is … [Read more...]
Tax Tips #1 – Donate Appreciated Stock to Charity
There’s a chill in the air (depending on your latitude) and the leaves are turning color. Naturally, your thoughts turn to next April’s taxes. No? Unfortunately, yes, it’s time to start thinking about your 2014 tax bill. Some strategies can be … [Read more...]
Losses on Sales to a Related Party
Due to the opportunity for abusive transactions between related parties, the IRS generally does not allow a taxpayer to take a tax loss on a sale of property to a related party. The problem Suppose Carl has a vacation home on a lake. He invites … [Read more...]
Taxes: Rental of your residence or vacation home
The tax treatment of income and expenses related to renting your residence or vacation home varies, depending on how many days the property is used for rental purposes as opposed to personal purposes. A residence with personal and rental use … [Read more...]
Auto deductions – the standard mileage rate method
You can deduct the cost of business use of your car using one of two methods: the actual expense method or the standard mileage rate method. The actual expense method usually gives bigger deductions in the year of acquisition. The standard mileage … [Read more...]