tax solutions for realtors: Role Models (NOT)
- 09/11/13 12:24 AM
Every year, the IRS Criminal Investigation unit releases an annual report detailing how they pursue and prosecute tax-law violations. It's full of the usual dry statistics you would expect from any IRS report: investigations launched, tax preparers indicted, identity thieves sent to prison, and even average sentences for different crimes (29 months for tax preparers, 64 months for money launderers). But it also includes some surprisingly entertaining stories about the people the Criminal Investigations unit targets — the kind of stories that make us feel better about our own choices in life. Having a bad day? You'll cheer up when you … (0 comments)
tax solutions for realtors: How do the Rich Get Away by Paying Less in Taxes?
- 09/09/13 11:38 PM
Well for one thing, they have the money as a group to hire great lobbyists. The best return on investment anyone can make is to have a good lobbyist. How many of you heard the term “carried interest” during the last campaign?
Private equity fund managers are paid two ways. One is based on the amount of money they manage for a fee while the other is based on performance. They get a percentage of the growth of their funds. That payment based on performance is called “carried interest”. Carried interest is taxed at low capital gains tax rates and saves this … (1 comments)
tax solutions for realtors: Winter is coming Worried about your Tan?
- 09/08/13 11:38 PM
Well the IRS has just finished its final regulations on the Obama Care taxation of indoor tanning beds. For those of you who have been in the dark about this (sorry couldn’t help myself) portion of the new Obama Care, indoor tanning beds will be subject to a 10% tax every time you use an indoor tanning bed. Since most tanning salons have you buy a package of sessions you will be prepaying this tax on something you might never use.
So here is the tax tip of the year. Drum roll please! Go to a center that is set up as … (0 comments)
tax solutions for realtors: Sole Proprietors and Tax Planning
- 09/08/13 11:07 PM
Recently I taught a continuing education class to about 50 real estate agents in Tulsa. As I had everyone in the room standup and talk about themselves I was surprised at how many of the agents were still sole proprietors. Of course the subject matter was the tax evolution of a real estate agent.
My suggestion for those of you that have been agents for a few years is to review your choice of business entity every year. When you are a sole proprietor there are many advantages depending on your personal needs and goals. As things change such as your commissions … (0 comments)
1) Choose the type of tax entity. This could be a sole proprietor, LLC, or S Corp. 2) Be aware of the taxes you have to pay. There is income tax, self-employment taxes, and employment taxes. 3) Get an Employee Identification Number if you are an LLC or S Corp. 4) Recordkeeping is one of the most important factors in running a successful business. You will need it to file your tax return as well as monitor your business 5) Be sure to open a separate business checking account for your business. You should also … (2 comments)
tax solutions for realtors: Amended Tax Filing in Your Future?
- 09/06/13 12:38 AM
If you found a mistake on any of your last three years filed tax returns you will need to file Form 1040X. The reasons to file an amended return are many. The most common problems are a change in filing status or math errors.
Attach all schedules and forms that have changes with the 1040X. The IRS has a new system so you can track your amended return once it is filed.
After three weeks from the date you filed the 1040X. through their IRS web site you can choose the “Where’s My Amended Return”. You can also call the IRS at 1-888-464-2050. … (0 comments)
tax solutions for realtors: Points Paid at Settlement can be a Tax Deduction
- 09/05/13 10:29 PM
Points paid on home mortgages may be deducted in the tax year you pay them. You don’t have to write a separate check for the points as long as you provide funds for down payments, escrow deposits, etc., at least equal to the points paid. In addition, the buyer can deduct points paid by the seller.
Points paid on a refinanced mortgage do not qualify for current deduction; you deduct them pro rata over the life of the loan.
There is an exception if part of the refinanced funds are spent on home improvements. You may be able to deduct the same percentage … (0 comments)
tax solutions for realtors: Arizona Couple Sentenced to 5 Years in Jail
- 09/04/13 11:20 PM
An Arizona couple prepared taxes under the firm name of Accurate Consulting LLC was found guilty of preparing fraudulent tax returns and sentenced to 5 years in Jail. Sheiia and Deane Young filed false tax returns for some of their clients overstating refunds from $12,405 to $368,102. $368,102- really? In all they filed some 122 false returns claiming over $10 million in refunds. But that’s not the worst of it. Guess what? The Youngs’ did not receive these funds, but their clients did. So the tax preparers went from hero’s to zero’s. The taxpayers will now have to pay back all … (0 comments)
tax solutions for realtors: Estimates Due September 16th
- 09/04/13 12:42 AM
If you pay your taxes using estimated tax payments your third quarter payments are due on the 16th. My advice to you is to review your taxes for 2013 before you make this payment. Is your income significantly greater than last year? O r has it pummeled for the first 8 months of this year? Well here comes the tricky part, by that I mean that you may want to increase or decrease your next estimated payment. But how much do you need to adjust your payment and not have a penalty? So here’s were you need a good proactive tax … (0 comments)
tax solutions for realtors: Are You Ready for Some Football, The Tax Man Is!
- 09/03/13 11:38 PM
Labor Day has come and gone, and, while fall isn't "officially" here, it's time to put away those summer whites. Never mind that the mercury is still hitting 100 degrees in parts of the country; forget about those pennant races still heating up in the AL West and NL Central. This weekend, the National Football League kicks off regular season play! This week's season opener is just the first step on the road to Super Bowl XLVII, to be played outdoors on February 2, 2014, at the Meadowlands in New Jersey. (If you look hard enough on ESPN, you can find … (1 comments)
tax solutions for realtors: Most Misunderstood Tax Deduction Part 2
- 09/02/13 11:18 PM
What happened to the home office deduction in 1997? IRS vs Soliman . Soliman was an anesthesiologist in San Francisco that had an office in his home and worked at various hospitals. He did not have an office at any of the hospitals only the one in his home. The IRS took Soliman to the Supreme Court and won the case. The hospitals were where the most important work was performed and the most time was spent there as well., In 1997 Congress decided to weigh in to this problem. They added an additional way to qualify for a home office. … (1 comments)
tax solutions for realtors: Most Misunderstood Tax Deduction Ever – The Home Office Deduction
- 09/02/13 11:00 PM
I hear this all the time about how my tax advisor or my friend told me that the home office deduction is red flag. You’re doomed if you take this deduction!! Well, I have to tell you, in 31 years of practice I have never had anyone audited because of a home office. Your chances of being audited are many times higher if you have large charitable deductions or large miscellaneous deductions. So why is it that the home office gets such a bad rap from some tax preparers and taxpayers? So here’s my two cents worth. Up until 1997 the … (1 comments)
tax solutions for realtors: How Well Do You know the Entertainment Rules???
- 09/01/13 11:14 PM
Did you ever think about the deductibility of a “Dutch Treat” meal expense?? How about these examples. 1) Ginny and Kara have just finished a morning training session at their broker’s office. They decide to go out to lunch together. While eating lunch they discuss the concepts taught at the training session. They go “Dutch Treat” when the bill comes and spend about $20 each.. 2) Harvey and Burt went to the same training session and decided to go have lunch and play a round of golf. During lunch and golfing they both discussed the concepts learned that morning. So, in example one … (0 comments)
tax solutions for realtors: IRS Declares “No Dumping Zone”
- 09/01/13 11:01 PM
Last Thursday, in Omaha Nebraska, several IRS agents were on a routine asset seizer of a front-end loader. Seems that was the last thing routine related to this action. Walter M Trizilla was watching his boss’s dump truck being seized by the IRS and couldn’t stand to see the front-end loader truck going to the IRS agents. Walter went to the loader in question and started it up. He then went and scooped up a full load of dirt and drove the front-end loader right at the IRS agents and , of course, dumped the dirt at the feet of the … (1 comments)
tax solutions for realtors: Tax Tips for Individuals Selling Their Home Part Two
- 08/30/13 12:15 AM
5) Generally, you can exclude a gain from the sale of only one main home per two year period. 6) If you have more than one main home, you can exclude a gain only from the sale of your main home. You must pay tax on the gain from selling any other home. If you have two homes and live in goth of them, your main home is usually the one you live in the most. 7) Special rules apply if you sell a home that you took the first-time homebuyer tax credit. 8) You cannot take a loss on the … (0 comments)
tax solutions for realtors: Tax Tips for Individuals Selling Their Home Part One
- 08/29/13 11:10 PM
If you are selling your home this Summer or some time this year here are some helpful tips. 1) If you sell your home at a gain you maybe able to exclude part or all of the profit. This rule generally applies if you have owned and used the home as your as your main home for at least 24of the last 60 months from the date of sale. 2) You may normally exclude $250,000 if single and $500,000 If filing jointly. This excluded gain is also not subject to the new Net Investment Income Tax which became effective for 2013. 3) If you … (2 comments)
tax solutions for realtors: If You Receive an IRS Notice, Here’s What to Do
- 08/28/13 10:31 PM
1) First of all open the letter. Next read the letter and then notify your tax preparer that you received a notice and fax or scan to him to review. 2) There are many reasons the IRS sends these out. Quite often it is about items of income that have been left off the return. These items could be a 1099, dividends, or interest. It may request payment of taxes and notify you of a specific change to your return. 3) If you receive a notice of a change on your tax return: a) If you agree to the correction, you usually don’t have to … (1 comments)
tax solutions for realtors: IRS and the Michael Jackson Estate at Odds
- 08/28/13 10:18 PM
Here’s another estate that could reap the IRS mega dollars. Seems the IRS is saying that the Jackson Estate tax return has overvalued things such as Michael’s real estate holdings, a Bentley automobile, and most of all Michael’s “image and likeness” The IRS had sent the Jackson’s a notice of deficiency that was delivered in May. All of the numbers have been redacted so know one knows what this situation looks like. Other items include the value of a Lloyds of London “contingency non-appearance and cancellation” policy, Jackson’s share of MJJ Ventures Inc. and two trusts and other personal property. The … (0 comments)
tax solutions for realtors: Two Car Tax Strategies Saves You $$$
- 08/27/13 11:31 PM
Have you ever thought about using more than one car in your business? How do you justify the business use of both cars? That’s easy. One SUV could be used to show houses to families while a car could be used tor one or two people. Generally speaking, most of us have a nice car for certain clients while have a “cheaper” car for clients that think you charge to much if you drive a luxury car. The bad part of using more than one vehicle in your business is that you have to keep a log all year long. But … (1 comments)
tax solutions for realtors: Hit 'Em Where It Hurts
- 08/27/13 11:09 PM
When people misbehave — badly enough — they go to jail. But when corporations misbehave, they can't go to jail. So they pay fines instead. Recent years have brought a wave of enforcement actions for various corporate offenses, from banks ripping off customers, to investment managers trading on inside information, to drug companies poisoning patients, to energy producers polluting public waters. Corporations usually find a little bit of silver lining in those monster settlements. They get to deduct the payments on their taxes! You like that? You and I get to help pay the freight for their cheating!
Every year, the IRS Criminal Investigation unit releases an annual report detailing how they pursue and prosecute tax-law violations. It's full of the usual dry statistics you would expect from any IRS report: investigations launched, tax preparers indicted, identity thieves sent to prison, and even average sentences for different crimes (29 months for tax preparers, 64 months for money launderers). But it also includes some surprisingly entertaining stories about the people the Criminal Investigations unit targets — the kind of stories that make us feel better about our own choices in life. Having a bad day? You'll cheer up when you … (0 comments)
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