In our last blog, we discussed the benefits of the 1031 exchange. This IRS rule allows property owners to delay paying capital gains taxes if they trade their property for a like-kind property. If both your old and new properties are used for business or held as an investment, you may qualify for a 1031 exchange. What if the property in question is owned not by an individual but by a partnership or LLC? The original partnership may even have been formed as a real estate investment partnership where each partner contributes properties of different values. Since partnerships are allowed to use s ..read more

If you own a business or investment property, deciding when to sell it can be complicated, in part because of the hefty taxes you will have to pay on the profit or “gain” from that sale. What if there was a way to delay taxation by simply trading one property for another? This is the concept behind the 1031 exchange. The IRS allows taxpayers to postpone paying the usual capital gains tax tax if that gain is reinvested into a similar property. Keep in mind that tax deferral is not tax elimination. This strategy simply allows taxpayers to delay paying tax until a future year when it may be more ..read more

In a previous blog, we discussed the benefits of the 1031 exchange. This IRS rule allows property owners to defer capital gains taxes when they trade a property for a like-kind property. So if your client has a property that is used for business or held as an investment and exchanges it for another property that is used for business or held as an investment, they may qualify for 1031 treatment. The matter can become more complicated when the property is owned not by an individual but by a partnership or LLC. Partnerships may be formed as a real estate investment partnership where each partner ..read more

A common conversation with clients is how to minimize taxes on their investments. When it comes to business or investment properties, taxpayers may be hesitant to sell, even if the investment is turning out to be an unprofitable one, because doing so will mean paying a sizable capital gains tax. What other options are available? Taxpayers who are willing to stay in the real estate market could benefit from a 1031 exchange. This IRS provision allows taxpayers to postpone paying capital gains tax if that gain is reinvested into a similar property. Of course, taxpayers must be advised that a 1031 ..read more

American gaming has boomed since sports betting and online gambling were legalized. Complex tax laws for filing and deducting gambling winnings and losses provide new hurdles for taxpayers. Internal Revenue Service (IRS) reporting rules from W-2Gs to 1099-Ks are very confusing for taxpayers to understand. So, as an accountant of a gambling client, you need to have detailed knowledge about gambling winnings and losses, as well as all the rules and regulations related to tax on gambling income. Without knowing that information, you can’t serve your client the legal help required to avoid paying ..read more

By Dominique Molina, CPA MST CTS You’re in the business of tax planning, and you pride yourself on being the go-to expert for navigating the complex world of taxes. You’ve mastered the ins and outs of deductions, credits, and retirement plans, but there’s a common myth that might be narrowing your view: the idea that tax planning is all about retirement savings. It’s a widespread belief, but it barely scratches the surface of what tax planning can do. In this article, we’re going to debunk that myth together. Let’s dive deeper than the usual retirement account advice and explore the broader ..read more

As 2024 kicks off, so do new legal requirements for small businesses. The Corporate Transparency Act took effect on January 1st, which means that many businesses will need to submit a Beneficial Ownership Information Report to the Financial Crimes Enforcement Network (FinCEN). These new regulations are intended to help the U.S. government identify small businesses that are actually a front for illicit business operations, such as money laundering. By collecting data on who is actually in control of businesses, the government hopes to crack down on bad actors.  Though the taxpayers themsel ..read more

What does it look like to operate ethically in the world of tax planning? Fortunately, the Office of Professional Responsibility (OPR) provides guidance on key ethical questions. Their primary resource, known as Circular 230, covers “Regulations Governing Practice before the Internal Revenue Service.” Depending on your status and credentials, adhering to Circular 230 may even be a requirement. This applies to enrolled agents (EAs) and Annual Filing Season Program (AFSP) record holders among others.  Circular 230 regulations are intended for those who “practice” before the IRS, but the eth ..read more

As 2024 kicks off, so do new legal requirements for small businesses. The Corporate Transparency Act took effect on January 1st, which means that many businesses will need to submit a Beneficial Ownership Information Report to the Financial Crimes Enforcement Network (FinCEN). These new regulations are intended to help the U.S. government identify small businesses that are actually a front for illicit business operations, such as money laundering. By collecting data on who is actually in control of businesses, the government hopes to crack down on bad actors.  Though the taxpayers themsel ..read more

In the rush to finish last year strong, small business owners may now find themselves caught off guard by the legal requirements awaiting them in 2024. This is where you can provide additional value to your tax clients, just by familiarizing them with the new beneficial ownership information requirement. This comes as part of the Corporate Transparency Act, which seeks to crack down on illicit business activities using small businesses as a screen. A major part of this legislation is the requirement for smaller businesses to provide data on who controls their business to the Financial Cri ..read more