Home Office Deduction Rules for Business Owners
Many business owners assume they cannot claim a home-office deduction because their home is too small. In fact, the tax law says otherwise. A home office does not have to be an entire room. If you use a clearly defined area of your home exclusively for business, you may qualify for the deduction—even if that […]
Smart Tax Strategy for Corporations: Use the Augusta Rule Wisely
What is the Augusta Rule? Here’s a valuable tax strategy, commonly known as the Augusta rule, that can help you generate tax-free income while claiming a legitimate business deduction. If you own a business structured as an S corporation, a C corporation, or a partnership, you may rent your personal residence to your business for […]
A Strategic Guide to Motor Home Tax Deductions
Here’s an important tax planning opportunity—and caution—regarding the deduction of a motor home used for business purposes. The Jackson case highlights that many taxpayers lose this deduction not because it is improperly structured/documented. When this situation is handled correctly, a motor home can qualify as a business transportation vehicle, a lodging facility, or both, allowing for substantial […]
Avoid Costly Tax Mistakes with Vacation Home Rentals
If you own a vacation home or rent out a second property, there’s a tax case you should know about—one that could save you thousands of dollars in lost deductions. The tax case shows the benefits of proactive tax planning when you own a vacation home or rent out a second property. Charles M. Akers […]
Boost Your Tax Benefits with Section 179 for Commercial Rentals
With bonus depreciation declining to 40 percent this year, Section 179 expensing is a powerful alternative. It allows you to deduct up to the full cost of personal property and eligible improvements in the year you place them in service. For 2025, the maximum deduction is $1.25 million, with phaseouts beginning at $3.13 million. Eligible […]
How to Avoid Unwanted Partnership Tax Status
Suppose you’re involved in a real estate or investment venture with one or more other parties, perhaps co-owning property or collaborating on a business project. In that case, you might think you’re simply sharing ownership. But the IRS may see it differently. Without proper precautions, your arrangement could be classified as a partnership for federal […]
Real Estate Professional Status & Passive Losses
Deducting your rental property tax losses against your other income is tricky, as you likely know. You have to get the tax law to treat you—say, a computer engineer—as a tax-code–defined real estate professional (IRS publication 925 discusses passive activity and At-Risk Rules and page 8 further explains Real Estate Professional Status). Let’s say you […]
The Tax Treatment of Personal Property Rentals
Here are some key points about renting personal property, which includes equipment, vehicles, and furniture. The tax treatment differs from real estate rentals, and how you classify the rental activity will affect how you report income, expenses, and potential self-employment tax. Classification of Personal Property Rentals The tax code treats personal property rentals in three […]
Avoiding the Self-Rental Trap
Let’s say you own a building. Now, let’s say that you rent this building to your business. With no tax planning, you have a self-rental, and that So, there you have it: a self-rental to your business with no tax planning, you will get the worst of both worlds. Yikes! Solution But wait—there’s a solution […]
Bedroom Rental – Tax Implications You Need to Consider
When you rent a bedroom or two or 20, you first examine Section 280A of the tax code to determine whether your bedroom rental is: When exempt from Section 280A, your bedroom rental faces four tax code sections: As you can see, bedroom rentals travel a torturous path. Please don’t hesitate to contact our team […]