2 results for tag: Real Property
2021 Last-Minute Year-End General Business Income Tax Deductions
Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo
The purpose of this article is to get the IRS to owe you money.
Of course, the IRS is not likely to cut you a check for this money (although in the right circumstances, that will happen), but you’ll realize the cash when you pay less in taxes.
This article gives you six powerful business tax deduction strategies that you can easily understand and implement before the end of 2021.
1. Prepay Expenses Using the IRS Safe Harbor
You just have to thank the IRS for its tax-deduction safe harbors.
IRS regulations ...
IRS Defines Real Property for Section 1031 Like-Kind Exchanges
The Tax Cuts and Jobs Act (TCJA) tossed an unwanted rule into Section 1031 by forbidding exchanges of personal property.
But before we move on, let’s clarify one thing: Section 1031 is not an “exchange,” which is defined by Merriam-Webster as a trade. In a tax code 1031 exchange, you generally would:
Engage an intermediary to handle the money and the tax paperwork;
Sell your real property; and
Buy the replacement property
So you are buying and selling, but when you do this under the Section 1031 tax rules, you don’t pay taxes on the sale. Pretty sweet, huh?
You are not off the hook. You can look at it this way: with the ...