Articles

Build Wealth With After Tax Income

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What is the first rule of building wealth?  It can only be built with “after tax” income. Thus, if you lower your taxable income, it gives you greater ability to create wealth.  If you are reading this article to find out how ‘not’ to pay any taxes, stop and don’t waste your time. You are better served looking at websites that will tickle your ears with schemes that offer you to pay no taxes on income. I would also suggest looking at sites on Federal prisons, because perhaps you can negotiate which one you would like to spend some time in after the Feds catch up with you for tax evasion.  Yes, it hurts to pay a large chunk of your income in taxes and yes it sucks.  But, in the U.S., the privilege to earn a large sum of money also comes [Read More]

November 13th, 2018|Articles|

Business Meals Deductible Again

Ending months of speculation, the IRS has issued new guidance that allows business deductions for certain business meals, despite restrictions imposed by the new Tax Cuts and Jobs Act (TCJA) on entertainment expenses (IRS Notice 2018-76, 10/3/18). The new notice preserves deductions that many tax commentators thought were in doubt.
Now the IRS has clarified the rules in the new guidance. Under Notice 2018-76, taxpayers may deduct 50% of the cost of business meals if:
  • The expense is an ordinary and necessary business expense under Section 162(a) that are paid or incurred during the tax year when carrying on any trade or business;
  • The expense is not lavish or extravagant under the circumstances;
  • The taxpayer, or an employee of the taxpayer, is present when the food or beverages are furnished;
  • The food and beverages are provided to a current or potential business customer, client, consultant or similar business contact; and
  • For food [Read More]
October 18th, 2018|Articles|

Property Managers and Self-Directed IRAs Real Estate Rentals

Do you Manage a property that is owned by an IRA?

If not, would you like to but are just not sure how?

As a property manager, just knowing the basic rules makes you a valuable partner for your owner.  You will find that some owners unintentionally may want to make a decision that will totally cancel out their IRA structure, but if you know the basic rules, you can protect their interests.

​​​​​​All management contracts, deeds, and legal documents must be in the name of the IRA and not the IRA owner’s name. When applicable, documents may be in the name of an IRA/LLC.

For the purposes of determining prohibited transactions through a self-directed IRA, the following people are considered disqualified persons:

 

 

  • You and your spouse
  • Your employer
  • Your lineal ascendants and descendants, as well as their spouses (children, parents, etc.)
  • Any person [Read More]
September 23rd, 2018|Articles|