Why is Depreciation Recapture on the sale of a rental property required if depreciation was never taken?

I received this question on social media. I answered it and will answer here, with the standard disclaimer that you shouldn’t take this as tax advice for your particular situation, but as information on where to start getting what you need to make a determination for your particular tax situation. Know that tax laws change [...]

By |2024-06-06T17:10:35+00:00June 6th, 2024|Rental Property, Taxes|0 Comments

They said you should start an LLC. Part A.

I hear it again and again. You should start an LLC (Limited Liability Company) for the tax benefits. You should put a rental property under an LLC for the tax benefits. Let’s talk about the tax benefits of having your rental property or business owned and operated by a Single Member LLC (SMLLC). The cost [...]

529 FAQs for College Savings

We've been investing in 529s for our children for almost two decades. Like most of you, we hope to seamlessly combine our 529s with our Coverdell Educational Savings Accounts (ESA), Post 9/11 GI Bill benefits, scholarships, and education tax credits. With more parents contributing to a 529 plan to help pay for their child's college [...]

By |2023-10-22T17:16:34+00:00October 22nd, 2023|Taxes|0 Comments

Schedule E – M.A.D.E. E.A.S.Y.

Whether you have a rental property for investment reasons or, like many military families, it's time to PCS, you need to complete and attach IRS Schedule E to your 1040. This information is based on both my personal experience investing in rental real estate and common errors I’ve seen new clients make on their tax [...]

By |2023-10-22T17:16:41+00:00October 22nd, 2023|Rental Property, Taxes|0 Comments

Write off your PCS

Many military families are in the final planning stage of their permanent change of station (PCS) move. As “PCS season”approaches, tax questions about what moving expenses are deductible and how to deduct them are often asked. Unlike other tax deductions, you do not need to itemize on your taxes to benefit from this savings. The [...]

By |2023-10-22T17:16:50+00:00October 22nd, 2023|Taxes|0 Comments

Depreciation Recapture for Military Landlords: The Good, Bad, and the Ugly.

***This article is focused on federal law, the laws in your state may differ.  The concepts presented here are simplified, written for common situations, and may not fully address your tax situation. This article should not be taken as tax advice for your tax situation. It is written for informational purposes only. **** Depreciation is [...]

By |2023-09-12T23:07:02+00:00September 12th, 2023|Taxes|0 Comments

More fun with LLCs: The Corporate Transparency Act

Yay! More laws, just what we all wanted. The purpose of the Corporate Transparency Act (CTA) is to reduce terrorist financing, money laundering, and other illegal activities. Like most of you I am 100% confident that it will be effective in stopping those things. The CTA was signed into law in 2020 and goes into [...]

By |2023-09-12T23:05:34+00:00September 12th, 2023|Business Taxes, MTEA News, Tax News, Taxes|0 Comments
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