Latest Posts on USATaxAid's Blogs

Rumored New IRS Real Estate Investor Target

As if things weren't hard enough for investors who got in during the real estate boom and then fell during the bust, now we have to worry about another IRS audit target specifically at those who lost. Rumor has it (I've yet to see anything authoritative from the IRS about this) that the IRS auditors are taking the position that Form 1099-As are all they need in some cases to assess cancellation of debt income. Please look... Read More »

IRS Quietly Issues New Instructions for Reporting When You Dump Bad Real Estate

In December 2011 and again in April 2012, the IRS has issued additional information about Form 982s, Form 1099-As and Form 1099-Cs. The way it's supposed to work: If you have property that you lose in foreclosure or deed-in-lieu of foreclosure, you are supposed to get a Form 1099-A. The form is supposed to indicate the total debt amount, which may or may not be right, the fair market value of the property, which is almost certainly... Read More »

Cross-Border Tax Grabs Target Smaller Businesses

States aren’t just targeting the big companies like KFC, Amazon and MNBC for their cross border tax grabs. Plenty of regular businesses are getting hit too.

1. A New Hampshire tire retailer was fined $109,000 by the state of Massachusetts. The reason? The retailer was selling tires to Massachusetts residents, who were crossing state lines to buy tires in sales tax-free New Hampshire. This one wound up in court. It also resulted in a new NH... Read More »

2. What Happens If Another State Tries To Grab Your Money?

   April 17, 2012 | Posted in Diane's Blog, USATaxAid's Blogs
   

   We've been talking a lot about the big Cross-Border Tax Grab that is going on between states. The battle is heating up and the only ones who can solve it – Congress and the US Supreme Court – don't want to get involved. Make no mistake, states want your money and they are using every opportunity they can to assess taxes on you, especially if you don't live in their state. You might ask, though, "Even if... Read More »

3. When Does a C Corporation Make Sense For You?

   | Posted in Diane's Blog, USATaxAid's Blogs
   

   We talk a lot about the good, the bad and the ugly of business structures. But it's not just about avoiding the bad and ugly (Sole Proprietorships and General Partnerships), it's also about picking the right business structure for your circumstances. Most business structures are considered flow-through. That means that the income and losses from the business ultimately end up on your tax return. There is no federal income tax paid at the structure level.... Read More »

4. IRS vs Real Estate Professional

   April 12, 2012 | Posted in Diane's Blog, USATaxAid's Blogs
   

   If you have real estate and have been taking advantage of all the great tax advantages available through phantom expenses like depreciation, then you likely have run into a snag. As your income goes up, your ability to take that loss against your other income goes down. There is an exception, if you qualify. That's by taking the Real Estate Professional deduction. If you haven't heard of this before, please search on this site for... Read More »

5. The Importance of the Start Date for Business & Investments

   April 10, 2012 | Posted in Diane's Blog, USATaxAid's Blogs | 1 Comment
   

   Want to pay less in taxes? Start a business. Want to create passive income without any tax? Start a real estate investment business. Did you notice there was one word repeated in both basic tax strategies? That word is "start." Nothing happens until you start. You won't make money from your business until you start. You won't create a passive income stream until you start. And you can't get tax deductions until you start. In the case... Read More »

6. The New 3.8% Rental Tax Starting in 2013

   April 5, 2012 | Posted in Diane's Blog, USATaxAid's Blogs
   

   There is a new tax coming in 2013. Actually, there are several. Today, though, we're talking about the 2010 Health Care Bill tax on passive income. You might have heard it also called the "real estate tax." The tax is on more than just real estate, but it's not on the total gross income, as has been reported. Here are some quick facts on the new 2013 tax:
   

   • Tax begins 1/1/2013
   • Effective for individuals with AGI above... Read More »

   • Is the Marriage Penalty Tax Coming Back?

     April 3, 2012 | Posted in Diane's Blog, USATaxAid's Blogs
     

     It's strange, but true. There is a good chance that you'll have to pay more in taxes if you're married, then if you're single next year. The assumption in the marriage penalty tax is that you are married to someone who makes about the same amount of money that you do. Under current law, you'll pay less tax being married, or at least the same amount of tax as opposed to being single and filing two... Read More »

   • Series LLC Questions

     March 29, 2012 | Posted in Diane's Blog, USATaxAid's Blogs
     

     The Saturday webinar "Secrets of the Series LLC" is available for replay at http://www.LegalShelfCompany.com/Series. Learn how helpful these Series LLC can be for growing entrepreneurs and real estate investors. There were a few questions that we weren't able to cover in the webinar that I want to cover today. Q: Can foreign investors also own Series LLC? Yes. You'll need to have a Social Security Number or ITIN from the IRS. Leave a... Read More »

   • Secrets of the Series LLC

     March 27, 2012 | Posted in Diane's Blog, USATaxAid's Blogs
     

     Who knew over 400 people would be interested in learning how a Series LLC may be the last business structure you ever need? That's how many people took a seat at Saturday's webinar "Secrets of the Series LLC." They learned how the Series LLC can provide privacy, less cost and the ultimate in flexibility. Even though only 8 states have Series LLC law, the Series can be used in most other states. Although, you do need... Read More »

   • IRS Red Flags from Schedule C

     March 20, 2012 | Posted in Diane's Blog, USATaxAid's Blogs
     

     The simplest business structure you can have is no structure. You just start. It's pretty compelling to do that. After all, if the main purpose of a business is to make money, then you want to go make some. You don't have time to plan business structures. At that point, they can easily become a hindrance to starting your business. Or at least that's what you may think in the beginning. There are 4 reasons why... Read More »