It isn’t easy to make predictions, especially about the future. But there is one prediction we’re confident in making: you will have substantial out-of-pocket expenses for health care after you retire. Personal finance experts estimate that an average retired couple…

Imagine this: your Schedule C business buys a home at the beach, uses it solely as an entertainment facility for business, pays off the mortgage, and deducts all the expenses.   Now say, 10 years later, without any tax consequence to…

Do you have a beach or mountain home that you rent out?  If the average period of rental is less than 30 days, you likely have a choice—either  claim the income and expenses on Schedule C, or  claim the income…

Working at a tender age is an American tradition. What isn’t so traditional is the notion of kids contributing to their own IRA, especially a Roth IRA. But it should be a tradition, because it’s a really good idea.   Here’s…

As you may remember, two bad things happened to the Employee Retention Credit (ERC):  On November 15, 2021, Congress retroactively repealed the ERC for the fourth quarter of 2021 (except for start-up businesses).  On August 4, 2021, the IRS issued…

When you think of the reverse mortgage, you may not think of using it as a tax planning tool.  If you are house rich but cash poor, the reverse mortgage can  give you the cash you desire, save you a…

The strategy behind creating an S corporation and then selling your home to that S corporation comes into play when you want to convert your home to a rental property and take advantage of the exclusions, or you need more…

If you do some work at home, you’re probably using your home internet connection. Are your monthly internet expenses deductible? Maybe. The deduction rules depend on your choice of business entity (proprietorship, corporation, or partnership). Deduction on Schedule C If…

Do you own or lease non-residential (think “commercial”) real property for your business, or rent non-residential real property to others?  If so, interior improvements you make to the property may be fully deductible in a single year instead of over…

When you own rental property, depreciation is your best friend. One reason depreciation is so valuable is that, unlike deductible rental property expenses such as interest and maintenance, you get to claim depreciation year after year without having to pay…