What are the Simplified Rules for a Tax-Free, Like-Kind Exchange?
If you could sell your property for a gain, the Internal Revenue Code Section 1031 allows you to postpone paying tax on that gain. The requirement: you have to be willing to reinvest the proceeds into a similar property. If you meet all the rules under §1031, this transaction would qualify as a like-kind exchange….
Sell Your Property, Pay Zero Tax
This is a real thing. See, we defend against IRS challenges to all sorts of transactions. Maybe here, by our explaining some of the IRS rules, we might just help someone avoid an IRS audit. This particular article is about tax-free exchanges. Again, this is a real thing outlined in the Tax Code. What is…
Reporting Taxes for Self-Employment Part 2
In our previous blog post, we discussed the top three sections of your Schedule C form. If you are a sole proprietor, then you will need to prepare and file a Schedule C every year that you are in business. This is to show the IRS whether you had taxable profit or deductible loss during…
Reporting Taxes for Self-Employment
Schedule C If you are a sole proprietor, then you know that each year, you need to prepare and file a Schedule C with your 1040 in order to show the IRS whether your business has had taxable profit or deductible loss. While this can seem like an overwhelming task, filing will be simpler than…
What Happens if the IRS Classifies Your Business as a Hobby?
The IRS assumes that you have started your own business in order to be profitable. So if your business is claiming a net loss for years and years in a row, or your business doesn’t meet other requirements, the IRS may decide that your business is a hobby. This can get messy if you want…
Quick Tax Tips for Small-Business Owners!
When it comes time to file taxes for your small business, you probably already know the basics. However, how can you make the most of this tax season and your tax returns? You probably know the simple tips, like keeping every receipt. They can add up to quite a few deductions! Also, keep track of…
Taxes and Closing Your Business
You may be planning to close your business, which means that you have a lot to think about before you can finally call it quits! Don’t forget to the put the IRS on your to-do list, as tax laws dictate that you need to keep the tax agency informed of your decision. Make sure you…
How to Make a Charitable Donation Count on Taxes
As many people know, charitable contributions to their community don’t just make a difference—it also provides an opportunity to relieve your tax burden for the year. In fact, this tax benefit is a massive reason why so many donors give; more than two-thirds of donors with a high net worth have said they would decrease…
Tax Debts and Bankruptcy
What happens when the taxes you owe to the government are more than you actually have? This can be a tricky situation, and many people who find themselves owing more than they can afford require legal assistance from an IRS tax lawyer. In many situations, the debtor will still need to pay back their tax…
IRS Payment Plans for Variable Income
IRS Payment Plans for Variable Income Recently, we posted an article about the professional boxer and irregular-income earner Floyd Mayweather, and his troubles paying his IRS tax debt. But today, we would like to discuss more IRS payment plans for the irregular or seasonal income for regular, everyday people, such as: • Farm workers •…