Hiring Your Children To Run Rental Properties
Have you considered hiring your children to work on your rental properties? If so, were you concerned when you did not see a line item for wages on Schedule E of your Form 1040? Don’t let that bother you. The IRS in its instructions explains that wages and other ordinary and necessary business expenses of the rental that are not [...]
Benefits of Partnering With Your Spouse Under New Tax Reform
Tax reform changed the rules of the game when choosing your best tax structure. In looking over the possibilities, we note that a properly structured spousal partnership could be your best choice. Here are the tax benefits to you: • Your spouse’s income is free from self-employment tax. • You and your spouse both still qualify for the new pass-through [...]
Business Income Deduction under Section 199A
As you likely know by now, the Tax Cuts and Jobs Act created a 20 percent tax deduction under new tax code Section 199A. The question for you: Will you reap any benefits from this new deduction? And the second question: If your qualifying for the 20 percent tax deduction looks bleak, what can you do now to create some [...]
Deducting Costs for Your Employee’s Bicycle Transportation Costs
Tax reform created taxes on employee fringe benefits for bicycles. You could (and can) deduct your costs for reimbursing employees for their qualified bicycle transportation costs. But tax reform now makes this bicycle transportation benefit a taxable event for your employees. In what for this tax reform is an interesting twist, businesses may continue to pay the $20 bicycle benefit, [...]
No Misc. Itemized Deductions Under the New Tax Law
The recent tax reform added new tax code Section 67(g), which states, “No miscellaneous itemized deduction shall be allowed for any taxable year beginning after December 31, 2017, and before January 1, 2026.” Before the recent tax reform, employees were already getting the short end of the stick when it came to business expenses. Why? The alternative minimum tax (AMT) [...]
New Section 179 Tax Deductions for 2018
The new and improved Section 179 deduction gives you more ways to take advantage of immediate tax deductions. It’s somewhat like having a flexible tax shelter in your back pocket for when you need it (and also need the property, of course). As in years past, the Section 179 deduction is available for both new and used assets and offers [...]