Article Highlights: For-Profit Businesses Not-for-Profit Businesses Nine Determining Factors Profit Presumption Taxpayers are often confused by the differences in tax treatment between businesses that are entered into for profit and those that are not, commonly referred to as hobbies. The differences are: Businesses Entered Into for Profit – For businesses entered into for profit, the [...]
Article Highlights: Airbnb, VRBO, and HomeAway Rented for Fewer than 15 Days during the Year The 7-Day and 30-Day Rules Exceptions to the 30-Day Rule Schedule C Reporting Renting out your home or second home for short periods of time is becoming increasingly popular with the advent of online services that match property owners with [...]
Article Highlights: Home Sale Gain Exclusion Home Sale Loss Rule Mortgage Interest Deductions When individuals buy new homes or these small cabins, they often consider turning their old homes into rentals rather than selling them. All too often, that decision is made without considering the tax implications. Converting a former residence into a rental may [...]
Article Highlights: Qualifications Employee Issues Method Options Income Limitations Relocation "Home office" is a term used to describe the tax deduction for the business use of your home, which may or may not be an office. If you're thinking of creating a home office in Australia, take a look at hollowaystorage.com.au and how they can [...]
Article Highlights: Home Equity Loan Home Equity Interest Deduction Alternative Minimum Tax Above-the-line Interest Deduction Qualified Expenses After leaving high school, young people need to make a big decision. Are they going to carry on to further education? Or will they start gaining valuable work experience, save up some money, and even start looking for [...]
Article Highlights: Solar Electric System TV Ads Do You Really Need One? System Cost Financing Solar Tax Credit Home Mortgage Interest It seems like you can't watch TV these days without being exposed to home solar ads touting free electricity and big tax credits. Be careful, as these savings and tax credits may not be [...]
Article Highlights: Early-Withdrawal Penalties Reduction in Retirement Savings Exceptions from the Early-Withdrawal Penalty If you are looking for cash for a specific purpose, your retirement savings may be a tempting source. However, if you are under age 59½ and plan to withdraw money from a traditional ira or qualified retirement account, you will likely pay [...]
Article Highlights: Schedule A Travel Expenses Résumé Preparation Job-Placement Services Unemployment Income Health Insurance If you are looking for work, some of the expenses you incur may be tax-deductible, provided that you are looking for work within the same field. Unfortunately, expenses incurred when searching for a job in a new field or a first [...]
Article Highlights: Failure to File Failure to Pay Borrowing from Family Home-Equity Loans Credit Cards Installment Agreements Pension Plans If you are unable to pay your tax liability for 2016, here is some information that you need to know. Most importantly, you should not let your inability to pay your tax liability in full keep [...]
Article Highlights: Crowdfunding Sites Gifts Charitable Gifts Business Ventures SEC Registration Raising money through Internet crowdfunding sites like GoFundMe is a great way to gather together funds for something. However, this prompts questions about the taxability of the money raised. A number of sites host money-raising projects for fees ranging from 5 to 9%, including [...]
