Latest Posts on Diane's Blog

IRS Red Flags from Partnerships

There are two types of partnerships, both of which will report on the same federal form: Form 1065. The two types of partnerships are general partnerships and limited partnerships (LP).

IRS Red Flags to Avoid With Your S Corporation Tax Return

Most S Corporation tax returns are due 3/15/12, with an extension possible for 6 months (to 9/15/12). There is an exception if you have an S Corporation that has a year-end that is something different then the calendar year-end of 12/31. In rare cases, the IRS has allowed S Corporations to use a different year-end, but it is necessary to file for their approval first.

What If You Make Money With Your Real Estate Investments?

One more question that came in after our Real Estate Deductions You Can Still Take webinar. I think this goes to the heart of the advantages of real estate investing:

• Appreciation
• Passive Income
• Tax Breaks

How to Get Started for the First Time Real Estate Investor

It's an exciting time to get into real estate, with prices at record lows and the rental market running hot. But it's still tricky, with some markets not yet stable.

Real Estate Investors! Do You Know About the 500 Hour Rule?

One of the most popular topics on our webinar "Real Estate Deductions You Can Still Take" was the real estate professional deduction. Here are the quick bullet points: If you make more than $100,000 per year, the only way you'll get a full deduction for real estate losses against other income is if you're a Real Estate Professional. A Real Estate Professional must have:

• Minimum 750 hours per year of real estate activities, AND
• More hours in real estate activities... Read More »

• The Best Business Structure for Real Estate Investors

  February 23, 2012 | Posted in Diane's Blog, USATaxAid's Blogs

  One of our most popular topics at our real estate webinars is business structure. It all starts with knowing what type of real estate investor you really are. For example, are you a real estate dealer, real estate investor, real estate professional, real estate business owner or a real estate investor? Please check out the free webinar replay at http://www.RealEstateLoopholes.com and find out more. (Scroll down to the bottom of the page to... Read More »

• Real Estate Dealer Tax Tricks

  February 21, 2012 | Posted in Diane's Blog, USATaxAid's Blogs
  

  What’s on the mind of real estate investors today? This past Saturday Megan & I did a webinar on real estate investing tax and asset protection solutions. Here are the questions we had regarding people who suddenly realized that their wholesaling or fix-n-flip properties meant they were a real estate dealer, not a real estate investor. We got flooded with questions. Here are some of the questions that we didn’t get a chance... Read More »

• Quick Tricks to Track Expenses

  February 15, 2012 | Posted in Diane's Blog, USATaxAid's Blogs
  

  Want to pay less tax? Track your expenses. Here are a couple of tips that our clients have used to make that task easier. But first, here’s why it is so necessary. Year after year, I see clients miss out on legal tax deductions because they didn’t track the expenses properly. They either forget how much money they spent (because they paid cash and had no receipt) or they don’t remember exactly what the expense... Read More »

• Five Signs Your CPA May Be Costing You An Audit

  February 9, 2012 | Posted in Diane's Blog, USATaxAid's Blogs
  

  A badly prepared tax return can mean an audit. Here are five signs your CPA may be costing you an audit. #1: Dramatic reporting changes on your return. This past year, one of my clients got tagged for audit. We’ve been practicing audit defense for our clients and their returns for so many years, that I was actually a little rusty in defending a return. In this case, the year under question had not been... Read More »

• Avoid These Two Extremes With Your Tax Preparer

  February 7, 2012 | Posted in Diane's Blog, USATaxAid's Blogs
  

  When it comes to finding the best CPA tax preparer, there are a number of things to consider. Generally, there are two big extremes you want to avoid when it comes to finding the best CPA tax professional. You want some who:

  • Helps you pay the least amount of tax legally possible, and
  • Doesn’t do something stupid/illegal/risky that means you’ll get hit with an audit
  In other words, you don’t want the CPA... Read More »

• Tax Court Penalizes Self-Prepared Tax Return

  February 2, 2012 | Posted in Diane's Blog, USATaxAid's Blogs
  

  Tax is tricky. And it often contradicts what you think you know. There rarely is one right answer, because everybody’s circumstances are different and it’s not as simple as reading an IRS tax guidebook. In fact, you need to look at Tax Court cases, memorandums, revenue rulings, revenue proceedings and Treasury Regulations. My firm pays a lot of money every year for the tax tools we use. It’s not some off-the-shelf Turbo Tax... Read More »

• Important Case Win for Real Estate Investors

  January 31, 2012 | Posted in Diane's Blog, USATaxAid's Blogs | 1 Comment
  

  Real estate tax can be complicated. Unfortunately, there are a few things about the way the IRS categorizes income and losses that don’t make logical sense. And that’s where do-it-yourself real estate investors can get in trouble if they’re also trying to DIY on their business structures and tax plans. One of the fundamental issues with real estate is that your income and losses could be considered:

  • Trade or business,
  • Passive Income/Loss with Active Participation,
  • Passive... Read More »