The Tax Professionals Blog
Section 179 & Residential Rentals
Posted by Bold Apps on
A frequent question asked by tax professionals is whether home furnishings such as washers, dryers, refrigerators, microwaves and the like, used as part of a residential rental, qualify for the Section 179 expense deduction. First-Time Homebuyer Exception
Posted by Lee Reams Sr. on
Individuals wanting to purchase a home frequently look to their IRA accounts as a source for the down payment. Although tapping one’s retirement funds is generally not a wise thing to do, many homebuyers do it anyway. In these situations, there is not much that can be done about the taxability of an IRA distribution, which depends upon whether it is a Traditional IRA, which may or may not have a basis created by non-taxable contributions, or a Roth IRA. However, there is a somewhat complicated exception that can avoid the 10% early withdrawal exception on a portion of the withdrawal.
Deducting Partner Expenses
Posted by Lee Reams Sr. on
A frequent question that arises is how to handle the deductible business expenses of individuals in a partnership. Generally, the partnership should reimburse each partner for any allowable expenses; those expenses would then be deducted on the partnership’s 1065 return.Are Work Clothes and Uniforms Deductible?
Posted by Lee Reams Sr. on
The costs of purchasing and upkeep of work clothing are deductible if the following two requirements are met.Using a Traditional IRA as an Income Diversion Tool
Posted by Lee Reams Sr. on
Making a deductible Traditional IRA contribution in one year and then converting it to a Roth IRA in the next year has the effect of moving the income from the first year to the second year. For example, a taxpayer made a Roth contribution in 2016 and then later it is determined his income in 2017 iwill be in a substantially