This short article was inspired after talking to one of my clients. This person seemed overwhelmed by, as he described them, “life demands”. He mentioned that at times between the demands from his business and home that he felt that life was hectic. I know that many of us has felt this feeling at one point of our lives, mainly due to the fast pace of our modern society which seems to overtake our time, money, and many times seems to...

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  The recent tax reform, known as the Tax Cuts and Jobs Act (TCJA), added some good benefits to your real estate rentals, both commercial and residential. Notably, your qualified business income from your real estate rentals creates a possible 20 percent tax deduction with no effort on your part. And if you want less taxable income, the TCJA gives you enhanced bonus depreciation and new avenues for Section 179 expensing.   New...

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The first good news is that you can be both real estate investor and real estate dealer with respect to your real estate portfolio. The next good news is that you are in control, and by knowing just a few rules about dealer and investor classifications, you can do much to increase your net worth. Let’s take a quick look at how big a difference you can make in the tax bite. Say you have a $90,000 profit on the sale of a property. •...

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In December of 2017, the Tax Cuts and Jobs Act further extended the benefits of investing in real estate by introducing a new “qualified business income” (QBI) deduction under IRC Section 199A that further reduces net rental real estate income by up to 20%. We have received some inquiries about the impact of the new Section 199A on real estate properties with triple-net leases. Since the inception of Section 199A, experts have...

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  You likely have heard conflicting information on the deductibility of business meals with clients and prospects. I have spent time researching this issue, and my conclusion is that tax reform eliminated tax deductions for business meals with clients and prospects.   Before the 2017 The Tax Reform Act there were two conditions to client and prospect meals:   Required you to establish that the meal was directly related to or...

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