How Does The Qualified Business Income Deduction (QBI) Benefit Your Real Estate Investments?

There’s no doubt real estate is a lucrative investment! Ownership of income-generating properties has been the seat of many eventually towering fortunes. But the liabilities involved with real estate are considerably larger than other investments. Managing tenants and maintenance, along with property and income taxes are expenses that perpetually eat away at your profit margin. Good News For Real Estate Investors But despite these expenses, there’s some good news for real estate investors on the
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Achieving Peak Financial Fitness

  Yosemite National Park, where I’m pictured in the photo above, is one of California’s greatest natural treasures. This shot was taken across from the half dome at Glacial Point. A stunning viewpoint to say the least! The beauty of Yosemite’s landscape and the majesty of the park’s stunning mountains are truly awe-inspiring. Speaking of Yosemite’s mountains, the park is home several very impressive peaks. That includes Glacial Point, pictured above, which rises over 7,200
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Tax Payers First Act Brings Welcome Reforms to IRS Appeals Process

Few things induce gut-churning panic faster than notice of an IRS audit. It’s a fear to which no taxpayer is immune. But thankfully, the recent passing of the Taxpayer First Act (TFA) is bringing some solace to taxpayers grappling with an IRS audit. Particularly for those appealing an audit. Internal Revenue Service Independent Office of Appeals To begin with, the TFA establishes the Internal Revenue Service Independent Office of Appeals. This new administrative body is
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Tax Reform Highlights – Business Provisions

Although some have criticized the process, priorities, and policies used in the formulation of this major tax system overhaul, we in the tax and accounting industry anticipated action. After several iterations, we finally got our wish for something—anything—in concrete so that we could get tax plans in place before year end and have answers to the many questions that our clients are asking about what tax reform does to their 2018 tax bill. On December
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Tax Reform Highlights – Individual Provisions

Although some have criticized the process, priorities, and policies used in the formulation of this major tax system overhaul, we in the tax and accounting industry anticipated action. After several iterations, we finally got our wish for something—anything—in concrete so that we could get tax plans in place before year end and have answers to the many questions that our clients are asking about what tax reform does to their 2018 tax bill. On December
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Tax Season – Time to Get Organized and Start Filing

If you didn’t begin creating year-end tax plans before last December 31, it could be worth your while now to start gathering together all your documentation and get organized. The Internal Revenue Service started accepting tax returns as of Tuesday, January 19, though you could have prepared a return on paper or with tax software and submitted it earlier. The IRS wouldn’t accept such returns until the 19th however. Filing early helps to lower any
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Benefits of the R & D Tax Credit for Small Business

The tax deal instituted by Congress at the end of 2015 makes the R & D tax credit permanent. This deal also includes two crucial changes to the R & D tax credit which provide a vital benefit to innovative small businesses, especially startups. Business owners need to examine these changes closely. First, the legislation permits small businesses to take the credit against their AMT (the AMT turnoff). Secondly, the bill permits small businesses to
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2015 Strategic Tax Planning for Businesses

YEAR-END BUSINESS PLANNING As with prior years, business tax planning is unsure due to the expiration of many popular but temporary tax breaks that have been of an “extenders” package of legislation. Another factor leading to uncertainty is the far-reaching Affordable Care Act. Additional changes to the tax law in 2015 made by new regulations and other IRS guidance also need to be weighed when evaluating year-end strategies. Code Sec. 179 Expensing Code Sec. 179
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2015 Strategic Tax Planning for Individuals

YEAR-END INDIVIDUAL PLANNING As in years past, there may be value in the customary year-end methods of shifting income. Taking stock of income and expenses to determine whether measures to defer or accelerate one or the other, before the close of the current tax year, should be considered as applicable at year-end 2015 as it has been in the past. As markets continue to adjust and fluctuate, it makes sense to evaluate current gains and
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Research and Development Credits Updates

On 12/19/2014, President Obama signed the H. R. 5771 Bill, known as the Tax Increase Prevention Act.  This means that a host of tax credits are being extended to another tax year. Among these is the Research and Development credit. Many small and middle sized businesses do not claim the credit because of the complications in calculating it: The research credit equals the sum of: (1) 20% of the excess (if any) of the qualified
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