Small Business Links

PostHeaderIcon Rental Real Estate Taxation Basics

While I continue to fret over my “about me” page, one of the things people ask me is, “What is your specialty?”  Over the course of my 18+ year career in tax, to a certain extent, I’ve done it all.  I’ve worked on billion dollar bank and insurance companies and large multinational manufacturing companies all […]

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PostHeaderIcon Installment Sales

Selling an asset can be taxing and sometime you run into problems when you sell an asset and you don’t collect all of the money at once.  Let’s look at an extreme example.  You have a building that’s worth $1 million but you’ve owned it for so long that it’s fully depreciated so if you […]

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PostHeaderIcon Holding Real Estate In a Corporation

Many people feel that the two absolutes in life are death and taxes.  In my experience, if there’s something that comes to close to a third absolute it’s that you should never hold real estate within a structure that’s taxed as a corporation.  I can give you some examples of where it works out okay […]

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PostHeaderIcon Tax Issues on Cancellation of Indebtedness (COD) Income

Cancellation of indebtedness (COD) income has become a bigger issue in the past few years then I ever remember it being.  At its core, if you take on debt and that debt is subsequently forgiven, you should be taking the amount of debt into your tax return as income.  It seems harsh because usually debt […]

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PostHeaderIcon Cost Segregation Study Resources

Yesterday I gave the ins and outs of cost segregation studies.  Today, I’m giving you some of the research resources attached to it.  One good place to start, if you don’t mind the investment is CCH’s U.S. Master Depreciation Guide (2011). This guide book will give you the ins and outs of the depreciation rules […]

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PostHeaderIcon Real Estate Dealer – How to Avoid the Trap

Whether you call them quickturns or flips, real estate investors who primarily rehab a property and then sell those properties rather quickly may fall into a trap.  If the IRS considers you a “dealer” then they basically consider you to be no different then a retailer.  Your houses are you inventory and the sales are […]

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PostHeaderIcon Taxes for the Beginning Real Estate Investor – Just Start Real Estate Podcast

I was recently on the Just Start Real Estate podcast sharing tax and business tips for new and prospective real estate investors.  You can check out the show notes here and you can download the podcast here. It was a lot of fun and if you have further questions (or you’re making your way here after […]

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PostHeaderIcon Lessons From Instant Tax Service’s (ITS) Shutdown

Over the weekend, Instant Tax Service, the fourth largest tax preparation firm, was shut down by the federal government.  If you want the long story, Tax Girl does an excellent job of running through the details.  The short story is, Instant Tax Service was run largely by people who didn’t know what they were doing […]

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PostHeaderIcon New Late S-Corporation Election Rules

S-Corporations are fairly popular and they can be a powerful tool in your tax strategy.  In order to qualify as an S-Corporation there are some requirements you have to meet and then you have to make the election.  The requirements include 1)  Being a domestic corporation 2)  Having shareholders that are only individuals, estates or […]

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PostHeaderIcon Gifts of Appreciated Stock

This question came up recently.  I had a financial adviser ask me if a client could gift some appreciated stock to their child and receive a step up in basis.  Unfortunately, you only get a step up in basis when it’s an estate situation.  When you gift appreciated stock, both the holding period and the […]

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