Category: Taxes
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How Does a K-1 Loss Affect My Taxes? A Simple Guide
How Does a K-1 Loss Affect My Taxes? A Simple Guide If you’ve ever received a Schedule K-1 tax form, you might’ve noticed a loss reported on it—and wondered, “How does this affect my taxes?” The answer isn’t as straightforward as you might hope, but understanding it could help you reduce your tax liability and…
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How the Augusta Rule Lets You Earn Tax-Free Rental Income
How the Augusta Rule Lets You Earn Tax-Free Rental Income The Augusta Rule, officially known as IRS Section 280A(g), is a lesser-known provision in the U.S. tax code that allows homeowners to rent out their personal residence for up to 14 days per year and not report the income on their federal tax return. That…
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How the Trump Capital Gains Tax Plan Could Reshape Real Estate Investing
How the Trump Capital Gains Tax Plan Could Reshape Real Estate Investing Are you prepared for the biggest tax shift real estate investors have seen in years? If you invest in real estate or plan to, the proposed changes to the Trump capital gains tax could open a rare window of opportunity from 2025 through…
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Bonus Depreciation 2025: Is Full Deduction Coming Back?
Bonus Depreciation 2025: Is Full Deduction Coming Back? Bonus depreciation has long been one of the most powerful tools in the tax code for reducing taxable income and increasing cash flow. And while the phase-down continues in 2025, new tax legislation being considered could bring back 100% bonus depreciation, offering a major opportunity for business…
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How To Pay No Taxes On Rental Income (Legally)
How To Pay No Taxes On Rental Income (Legally) Many high earners want to hang on to more of their money and cut down their tax bills. You can legally pay little to no taxes on rental income by using common tax deductions, reporting all expenses, and taking advantage of property depreciation. *Quick heads-up: I’m a…
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How to Read a Schedule K-1 (Form 1065) – Simple Tax Guide
How to Read a Schedule K-1 (Form 1065) – Simple Tax Guide Are you holding your first K-1 tax form and wondering, “What does all this mean?” You’re not alone—and the good news is, this guide will walk you through exactly how to read a K-1, what all the confusing boxes mean, and how this…
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How Accelerated Depreciation in Real Estate Cuts Your Taxes
How Accelerated Depreciation in Real Estate Cuts Your Taxes If you’re a real estate investor, you’ve probably heard the term accelerated depreciation. But what does it really mean—and how can it help you save money on your taxes and grow your cash flow? In this article, we’ll break down accelerated depreciation in real estate using…
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Pros and Cons of Being a Real Estate Professional For Tax Purposes
Pros and Cons of Being a Real Estate Professional For Tax Purposes The Real Estate Professional (REP) tax status is one of the most sought-after designations for real estate investors looking to reduce their taxable income. The Internal Revenue Service (IRS) offers this classification under the Internal Revenue Code (IRC), allowing qualifying individuals to deduct…
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Investing in Tax Liens: An Effective Passive Income Investment
Investing in Tax Liens: An Effective Passive Income Investment Investing in property tax liens can be a unique way to generate income and diversify your portfolio. When property owners fail to pay their property tax bill, local governments create tax liens by placing a legal claim on their real property. By purchasing these liens, you…
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Top 5 LLC Tax Loopholes Small Business Owners Should Know
Top 5 LLC Tax Loopholes Small Business Owners Should Know Small businesses are a cornerstone of the U.S. economy, driving nearly half of economic activity and creating millions of jobs. This has prompted the government to support them with various tax benefits, such as tax breaks, deductions, and credits. The Internal Revenue Code includes extensive…
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Can K1 Losses Offset Your W2 Income?
Can K1 Losses Offset Your W2 Income? One of the top (and most misunderstood) questions our Passive Investors Circle members ask is whether K-1 losses can help reduce their W-2 income. The good news is that for certain types of investors, K-1 losses can offset W-2 income, specifically if they relate to passive activities. Remember that…
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How to Calculate Straight-Line Depreciation: A Simple Guide
How to Calculate Straight-Line Depreciation: A Simple Guide Managing your business or practice’s assets effectively is essential for maintaining financial health. One tool that can simplify this process is the straight-line depreciation method, a widely used approach that evenly spreads the cost of an asset over its useful life. Whether you’re running a small business…
