Morris+D'Angelo


Refresher: Principal Residence Gain Exclusion Break (Part 2 of 3)

Federal Income Tax Savings, Home Sale Gain, Home Sale Gain Exclusion Break, Income Tax gain Exclusion Break, Income Tax Savings, Principal Residence Gain Exclusion Break, Qualified Individual, Real Estate Taxes, Residential Real Estate, Safe-Harbor Rule, Unrecaptured Section 1250 Gain
Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo With residential real estate markets surging, significant unrealized gains are piling up for many homeowners. That’s good news if you’re ready to sell, but what about the tax implications? Thankfully, the federal income tax gain exclusion break for principal residence sales is still on the books, and it's potentially a big deal for prospective sellers. If you’re unmarried, the exclusion can shelter up to $250,000 of home sale gain. If ...

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Refresher: Principal Residence Gain Exclusion Break (Part 1 of 3)

Federal Income Tax Savings, Home Sale Gain, Home Sale Gain Exclusion Break, Income Tax gain Exclusion Break, Income Tax Savings, Principal Residence Gain Exclusion Break, Real Estate Taxes, Residential Real Estate
Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo With residential real estate markets surging, significant unrealized gains are piling up for many homeowners. This is good news especially if you’re ready to sell, but what about the tax implications? Thankfully, the federal income tax gain exclusion break for principal residence sales is still on the books, and it’s a potentially big deal for prospective sellers. If you’re unmarried, the exclusion can shelter up to $250,000 of home ...

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Find the Winning Tax Law for Your IRS Audit

IRS Disclaimers, IRS forms, IRS Tax Audit, Non-Acquiescence, Revenue Procedure, Revenue Ruling, Tax Audit, Tax Authority, Tax Court, Tax Law, Tax Rule
Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo If you ever find yourself in a dispute with the IRS, it's probably a good idea that you know which documents you will need that will help your case. In this article, I will help you understand my preferred sources of Tax Authority; rules that absolutely bind the IRS and the Rules IRS gives credence to. Know Your Audience When you search for Tax Rules, keep your audience in mind. As you’ll see, the IRS and the courts disagree over the ...

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Tax Savings for Married Taxpayers Claiming Section 179 Deductions

Business Income, Business Income Limit, Married Taxpayers, S Corporation, Schedule C Net Income, Section 179 Deductions, Separate Tax Returns, W2
If you are married, you need to know three special rules that can benefit your Section 179 deductions: The Section 179 business income limit includes W-2 income earned by both you and your spouse. Section 179 expensing treats you and your spouse as one taxpayer. If you and your spouse file separate returns, you need to make an overt election of how you are going to share your Section 179 deductions. The W-2 For Section 179, among other purposes, employees are engaged in the active conduct of the trade or business of their employment. Thus, wages, salari...

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Loophole: Harvest Tax Losses on Bitcoin and other Cryptocurrency

COVID Tax Credits, Employee Retention Credit, ERC, Paycheck Protection Program, PPP, PPP Forgivable Loan, Small Business
Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo You are not cheating when and if you use a loophole. The dictionary defines “Loophole” as a means of escape ... it’s a small opening to admit light and air or to permit observation. When it comes to tax losses on Bitcoin and other cryptocurrencies, you’ll find in this article an escape from a tax-loss rule that does not allow you to deduct a tax loss. Yes, you read that right! The tax code has rules that don’t allow current ...

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Don’t Miss Out on the Employee Retention Credit

Employee Retention Credit, ERC, COVID Tax Credits, PPP Forgivable Loan, Paycheck Protection Program, PPP, Small Business
Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo Since the start of all the challenges that the COVID-19 pandemic brought to us with all of its mandates, many inconveniences, and I’m sure business anxiety, one thing is for sure; that your U.S. Government does not want your small business to fail. The U.S. Federal Government wants your small business to survive and likely thrive. Since COVID-19 struck, the government has created free and/or easy money in the form of tax credits and loans that ...

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IRS Income Limit Mistake on Home Office Deduction

Home Office, Home-Office Deduction, Income Limit, IRS, IRS Income Limit
Can you ever imagine that the IRS could ever be wrong? If the IRS were wrong, what would be your strategy? Situation You use the office in your home as the administrative office for your business. You use your downtown office as your sales or patient office. The downtown office is the office location where you make the cash register ring. Questions What percentage of your gross income comes from the office in your home? Why do you need to know this? Because the IRS Says... Pub. 587: In its home-office publication, the IRS says that because ...

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The U.S. $1 Trillion Infrastructure Package Spotlights Crypto Transactions / Crypto Taxes

Bitcoin, Blockchain, CPAs, Crypto Currency, Crypto Exchanges, Crypto Transactions, Digital Asset Sale, Infrastructure Bill, IRS, Taxes
It appears that the U.S. Senate is moving closer to passing a $1 trillion infrastructure package recently after lawmakers from both parties came together and voted to clear a key procedural hurdle. The measure would provide a massive injection of federal money for a range of public works programs, from roads and bridges to broadband Internet access, drinking water, and more. This occurred over this weekend in a rare showing of bipartisanship. For those of us who are paying attention, especially for our Customers, there is a provision, tucked inside this massive ...

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You Took Coronavirus-Related IRA Money Last Year: What Now?

and Economic Security Act, CARES Act, Coronavirus Aid, Coronavirus Relief, Coronavirus-Related IRA, CRDs, CVD Basics, IRA, IRA Money, re-contributions, re-contributions, Relief
Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo If you’re a traditional IRA owner who was adversely affected by the COVID-19 pandemic last year (2020), you may have been eligible to take a tax-favored coronavirus-related distribution from a traditional IRA. If so, that privilege was thanks to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). In this analysis, we will call these tax-favored traditional IRA distributions “CVDs.” Elsewhere, you may see them called ...

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Can Home-Office Tax Deductions Include Garage Space?

Attic Office, Garage Office, Garage Space, Home Office, Home-Office Tax Deductions, Tax Law
Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo Do you claim a tax deduction for a home office? Should you include or exclude your garage space in your calculations of business-use percentage? Home-office tax deductions require a look at the garage and other usable space as possible positive or negative factors in the home-office calculation. This takes more than a sentence or two. You need to read this article because there’s more to the garage space questions and answers than meets the ...

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