At my CPA firm, I come across a lot of folks who have held rental or investment property for some time and are considering doing a 1031 exchange, typically into markets where they'll get more bang for their buck in terms of cash flow. They know that when they sell an appreciated asset, they generally have to pay capital gains tax on the sale, and that they can defer paying … [Read more...] about 1031 Exchange Rules 2018: What Is a 1031 Exchange?
If you're starting a business on the side, especially if it's kinda fun, you may be wondering if you can claim a business loss on your personal taxes against other forms of income, such as W-2 wages, interest income, or rental income. Yesterday my client was wondering the same thing. He's a successful land broker, and his success has given him the time and money to engage … [Read more...] about Claiming a Business Loss on Taxes: Can Schedule C Losses Offset W-2 Income? Or Do the Hobby Loss Rules Prevent This?
Some of the most common questions I get are about tax deductions for travel expenses: "Can I claim travel on my tax return? What are deductible travel expenses? Can you name for me some examples of travel-related expenses that are deductible? What about meals I eat on travel — are those deductible too?" To start this conversation, let's go over a list of some common … [Read more...] about Does the IRS Let You Deduct Travel Expenses? What Is the Business Travel Expense Deduction?
The $250,000 (single) / $500,000 (married) home sale gain exclusion is a major benefit of homeownership, but the rules can be confusing if you're not familiar with them. How do you calculate your gain in the first place? What if you owned your house before you got married? Can you exclude $500,000 of gain or only $250,000? What about if you rented out your home at … [Read more...] about Home Sale Gain Exclusion Rules Under Section 121: How Does the Primary Residence Tax Exemption Work?
A client recently asked me about the tax implications of buying a vacation home "somewhere far away from Los Angeles," renting it out on Airbnb part of the year, and taking a 2-week family vacation there once a year. I explained to him that the tax code is very granular when it comes to vacation homes. How many days you use a vacation home for personal/family use vs. how … [Read more...] about Vacation Home Tax Rules: What Deductions Can I Take?