Tax Preparation and Consulting, Financial Counseling and Education
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Residential rental property is usually considered a passive activity from a tax perspective (there are exceptions). This means if the activity generates losses, the losses are passive losses. Passive losses usually can only be used to offset passive income. If you have one rental property that makes a $5000 taxable profit and another that has …
The Corporate Transparency Act (CTA) was signed into law in 2020 and goes into effect in 2024. The CTA has a new reporting requirement to the US Treasury Department. I plan on helping clients file their CTA reports. The reporting will be through FinCEN, likely similar to how foreign accounts are reported to FinCEN. Who? …
Well 5 of them, I’m only going to count on one hand. I probably hear some variation of this every month: I thought having rental property would save me on taxes. Well, it does. It just may not always be obvious. We’ll go through some ways that having rental property can “save” you on taxes. …
Most often taxpayers receive a 1099-NEC for contract work they did for a company. However, taxpayers with a business, self- employment, or rental property may actually be required to issue a 1099-NEC form themselves under certain circumstances. Military families often have some side income or rental property and if this is the case for you …
There was a change in 1099-K reporting that requires third party payment networks (Paypal, Venmo, etc…) to report transactions for goods or sevices on a 1099-K if they add up to $600 or more for the year. That lower requirement can apply in other cases as well. The 1099-K would go to the recipient of …
Disclaimer: As with most of this series, the focus is on long term rental property income and expenses that are filed as part of an individual tax return as opposed to a business tax return. However most of what I write does apply to short term rentals as well. Nothing in this article should be …
Often an incidental military landlord gets surprised by depreciation recapture when the rental property is sold. This can be due to several reasons. One is that the taxpayer expects to have capital gains excluded from taxation and he or she doesn’t know about depreciation recapture. Another common reason is that the taxpayer, for whatever reason, …
Whether you find rental property taxes and Schedule E tax forms simple or difficult, errors do happen and some of them can be costly. Sometimes fixing them can be difficult and time consuming. Paying interest and penalties is not any fun either. Here are some errors to avoid. 1. Depreciation Errors. Depreciation is often viewed …
While some conversions of a residence to rental property are part of a long term plan, often for service members and military families the decision to convert just seems to be the best option when a Permanent Change of Station (PCS) comes up. Most incidental landlords don’t know what to expect for taxes with rental …
The Tax Cuts and Jobs Act (TCJA) went into effect in 2018. One good thing about this change in tax law was that QBI offered up to a 20% deduction from qualifying income, so that taxes could be substantially lower for qualifying business activity. In many cases military landlords can qualify for this deduction. For …