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Cost Segregation = Tax Savings
Cost Segregation is a VERY BENEFICIAL tax angle used by real estate owners to ACCELERATE DEPRECIATION deductions. In the past it was primarily used by large accounting firms and larger clients. The ability for smaller building owners to utilize these techniques is now becoming popular. It takes an engineering study and an accounting firm that…
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Breast Implants – Deductible Medical Expense?
No. They are considered cosmetic. But what if they are implanted in conjunction with a deductible procedure? Tax Court Case O’Donnabhain (2010), 134 TC No. 4 The Tax Court has held that an individual could deduct as a medical care expense under Code Sec. 213 amounts paid for hormone therapy and sex reassignment surgery that were incurred…
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Work for Pay Credit – How much did you receive?
This credit is available in 2009 and 2010. According to IRS instructions, taxpayers who received the $250 economic stimulus payment in 2009 (Social Security recipients, SSI, railroad retirement and Veteran’s Disability or Pension benefits) must reduce the Form 1040 credit by this amount. The math is simple BUT we forsee a few problems. Since the…
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Work for Pay Credit 2009 & 2010
Depending on your AGI (Adjusted Gross Income – that is the bottom line of the first page of your personal Form 1040), you may be eligible for a $400 credit ($800 if married filing joint). For 2009, if your filing status is Single, Head of Household or Married filing separate, the phase out of the…
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LLC to be taxed as a Corporation?
Until you know you are going to stick with it (no offense, many clients try stuff and change their mind), I would not consider the extra paperwork involved with having the NEW LLC taxed as a corporation. You can find more information on our website for Sub S Corporations www.USATaxHelp.com and also the why you…