 If you're married, there are three particular restrictions to know about Section 179 deductions. Even if you file separate returns, you must treat yourself as one person for Section 179 restrictions.
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 Tax rules affect the amount of money you can deduct from your travel expenses. Traveling to or returning from a destination outside the Business days are important in determining how much of your travel cost you may deduct. If you have questions about your business travel, please don't hesitate to call us.
 Amounts can be re-deposited into traditional IRAs within three years of withdrawal (s). Each withdrawal and subsequent re-contribution within three years is treated as a tax-free IRA rollover. That's the tax break.
The non-tax benefit is that you can use CVD funds however you want. You can use the funds to pay bills and then contribute again within three years if you can afford it. You can help your adult children now and later. Point. The favorable tax treatment extends to traditional IRAs, SEP-IRAs, SIMPLE-IRAs, and employer-sponsored retirement plans that allow CVDs. The tax-free-rollover-equivalent outcome requires some unpleasant interim tax consequences. Interim tax consequences can reduce the cash-management benefits of the CVD deal, and they require amending returns to be tax-free. You can always keep all or part of your CVD money. The CVD amount you don't reinvest is taxable income. Rejoice. Whatever you do with your CVD, you won't owe the dreaded 10% early withdrawal penalty tax on traditional IRA withdrawals made before age 59 1/2. The penalty tax does not apply to CVDs. The SIMPLE-IRA is the same. IRS Notice 2020-50 clarifies that CVDs from a SIMPLE-IRA are exempt from the 25% early withdrawal penalty tax.  Luxury water travel deductions on a yacht or other luxury boat require tax knowledge. Tax law treats entertainment facilities harshly, so you need to consider providing no business entertainment. If you would like to discuss your possible yacht deductions,
Contact us! The IRS was looking to receive $102,000 from a husband and wife regarding their rental property! A husband and wife had a dreadful encounter with the IRS. The auditor looked over their rental properties, denied their losses, and informed them that they would be hit with a $102,000 tax liability. Based on that, The IRS is expecting to receive $102,000 from the clients. The IRS was in agreement that one of the spouses was a real estate professional. However, based on their documentation, the IRS, didn't believe that material participation has been met and disallowed the tax credit. They had several rental properties with zero personal use. The case for the hours we deemed irrelevant based on IRS own regulations.  They had several rental properties with zero personal use. The case for the hours we deemed irrelevant based on IRS own regulations.
As a starting point, we looked at another case, where the taxpayer had to count only the time that front-desk workers spent on their unit this particular court case., not the entire time they spent. Our client passed that test. At this point we have successfully shutdown the IRS claims for disallowance. We went on to disprove the remaining of their claims using our proven strategies. The audit was resolved in favor of the client and they received a no change letter. They won! |
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Spencer Accounting Group, LLC does not provide investment, tax, legal, or retirement advice or recommendations in these blogs. The information presented here is not specific to any individual's personal circumstances. AuthorKeana Spencer is an Accountant, Entrepreneur, and Educator to her clients, with a strong passion. Keana has over 10 years of experience and through her practice, she is a source of knowledge and strategies to her clients. 
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