Month: March 2019

Safe Harbor for First Year Passenger Auto Depreciation

Under the Tax Cuts and Jobs Act (TCJA), there is an additional first-year depreciation deduction that applies to qualified property, including passenger automobiles, acquired and placed in service after September 27, 2017, and before January 1, 2027.

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Taxable vs. Nontaxable Income

All income is taxable unless the law specifically excludes it, but as you might have guessed, there’s more to it than that. With that in mind, let’s take a closer look at taxable vs. nontaxable income.

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Pros and Cons of Filing a Tax Extension

Obtaining a 6-month extension to file is relatively easy and there are legitimate reasons for doing so; however, there are also a few downsides. If you need more time to file your tax return this year, here’s what you need to know about filing an extension.

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Is Home Equity Loan Interest still Deductible?

The Tax Cuts and Jobs Act has resulted in questions from taxpayers about many tax provisions including whether interest paid on home equity loans is still deductible. The good news is that despite newly-enacted restrictions on home mortgages, taxpayers can often still deduct interest on a home equity loan, home equity line of credit (HELOC) or second mortgage, regardless of how the loan is labeled.

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Report Name Changes before Filing Taxes

All of the names on a taxpayer’s tax return must match Social Security Administration records because a name mismatch can delay a tax refund. Here’s what you should do if anyone listed on their tax return changed their name:

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How to Maximize the Tax Benefits of Rental Property

Rent to Win: Understanding the Income and Tax Benefits of Rental Property

Have you thought about purchasing a rental property? Great! You have the opportunity to generate additional income, save for retirement, and improve your tax posture. To unlock the full income and tax benefits of rental property, it’s critical that you do the following 5 things first:

  • Meet with a financial planner. Explore how owning a rental property will fit into your current and future financial needs.
  • Carefully choose the right rental property! Do your homework. Research the neighborhood. Compare monthly rental rates for nearby properties.
  • Consult with a lawyer. You’ll need an airtight rental contract to reduce your liability.
  • Decide if you’ll manage the property or hire a manager. Don’t miss out on the tax benefits of rental property because you’re afraid managing real estate will take up all your spare time. Many owners of apartments and homes for rent will hire a property manager.
  • Meet with a CPA who has real estate and rental property experience. Real estate taxes can get complicated…fast. However, here at Robert P Russo CPA, we work with everyone from couples who own a single rental property to landlords with dozens of apartments and homes for rent. Our goal is to maximize the tax benefits of rental property for our clients. Now, let’s take a closer look at those benefits…

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