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Showing posts from April, 2019

April Tax Saving Tips

Tax-Saving Tips April 2019
Good News: Most Rentals Likely Qualify as Section 199A Businesses The Tax Cuts and Jobs Act tax reform added new tax code Section 199A, which created a 20 percent tax deduction possibility for you if your rental property (a) has profits and (b) can qualify as a trade or business. As the law now stands, with rentals that achieve trade or business status, you win. Your business-status rental property creates the following five possible tax benefits for you: Your rental property can create a Section 199A tax deduction of up to 20 percent of the rental property’s qualified business income.Your rental property receives tax-favored Section 1231 treatment, which (upon sale) delivers with a tax loss—an ordinary loss (the best kind of loss)—and with a tax-favored capital gain (the best kind of gain).Your rental property can create the home-office deduction if you meet the other home-office requirements of exclusive and regular use.…