If I have one pet peeve when it comes to IRAs, it’s when some well meaning financial “expert” presents the Roth IRA as the only kind of IRA that matters. After all — so the story goes — earnings are tax-free in a Roth IRA but only tax-deferred in a Traditional IRA, and doesn’t tax-free sound better than tax-deferred? Unfortunately this is an overly simplistic view of the … [Read more...] about Roth IRA vs. Traditional IRA: Key Differences and Similarities
Typically, the IRS requires taxpayers to depreciate assets over several years. This results in a relatively small percentage of the cost of an asset being allowed as a deduction each year. For example, if you install a fence on your rental property, you would have to depreciate this asset over fifteen years using special formulas published by the IRS. Over the next 15 … [Read more...] about Bonus Depreciation: What It Is and How It Works
So you just picked up a new gig in a restaurant, hotel, or bar, and you keep all the tips you earn. Are these tips taxable? The answer is yes, but as with anything in tax, the rules can get complicated. Here’s what you need to know. Are Tips Taxable? The answer is yes, they are. The IRS defines gross income as “all income you receive in the form of money, goods, … [Read more...] about Are Tips Taxable? Yes, and Here’s What You Need to Know.
Many self-employed business owners wrongly assume that their retirement options are more limited than those available to employees of large corporations, who often have access to an employer-sponsored 401(k). … [Read more...] about The Ultimate Guide to the Solo 401(k), Written by a CPA Who Has One
Most people who invest in rental property do so with a profit motive, oftentimes raising the rents as high as they can in order to maximize their income. Renting Below Fair Market Value But in other situations, maximizing profits may not be the ultimate motive. In these situations, a landlord may be willing to rent to a tenant at below fair market value. This is quite … [Read more...] about Below Market Rent: Tax Consequences of Renting Below Fair Market Value