Latest Posts on USTaxAid's Blogs

  • Freedom and the Three Types of Income

    July 4, 2014 | Posted in Diane's Blog, USTaxAid's Blogs

    We talk a lot about freedom in the US: Freedom of speech, freedom of religion, freedom to do what we want, freedom to live where we want, etc. In my opinion, none of these freedoms make us free until we also have financial freedom. What’s the point of freedom to do what we want if we can’t afford to do anything? And that’s why I care so much about the way money is made. If you’re... Read More »

  • BREAKING! New Rules for Foreign Investors of US Real Estate

    July 3, 2014 | Posted in Diane's Blog, USTaxAid's Blogs

    A brand new law goes into effect on July 1, 2014. It’s called Foreign Account Tax Compliance Act (FATCA for short). This affects Americans who have accounts in foreign countries and it affects foreign nationals who invest in the US. I’ve had several blog entries over the past month regarding the reporting for Americans. Today, I want to talk about the brand new instructions just handed down by the IRS for foreign nationals. The new... Read More »

  • IRS issues Final Rules on Tax Credit for Small Employers Offering Health Coverage to Employees

    July 2, 2014 | Posted in Diane's Blog, USTaxAid's Blogs

    There has been a lot of talk about all of the problems with the Affordable Care Act (Obamacare) and the costs for taxpayers. There is one benefit for small business owners. If you furnish qualified insurance to your full time employees, you have less than 25 full-time equivalent employees and the average annual wage of all FTEs is less than double $25,400 (for 2014) you have a credit coming to you. There are some... Read More »

  • Hobby vs Business

    July 1, 2014 | Posted in Diane's Blog, USTaxAid's Blogs

    When does your hobby become a business? If you’re just getting started selling a few things online, it almost always starts as a hobby. That’s especially true if you’re just selling things out of your garage or storage. But, at some point you’ve got to wonder if you have a business. This all leads up to a question that we received at If you’ve got a question, please submit it through the website. You’ll... Read More »

  • Update on Real Estate Professional IRS Audits

    June 30, 2014 | Posted in Diane's Blog, USTaxAid's Blogs

    If you have real estate rentals, you may have heard about the real estate professional (REP) loophole. One of the benefits of real estate investments is that you can create a tax loss legally while you still have cash flow that shows up every month. The problem is that you lose the ability to take that loss against your other income as your income goes up. If you make under $100K, you can take up to... Read More »

  • 6 Questions to Help You Identify the Best Business Structure

    June 27, 2014 | Posted in Diane's Blog, USTaxAid's Blogs | 3 Comments

    One of the most common questions we get at USTaxAid is, “What’s the best business structure for me?” Here are some questions that you need to answer first.

    1. Will you hold assets that you expect to appreciate? If that’s the case, you’ll want a single-member or multi-member LLC that takes a disregarded tax status. The corporation is not your friend.
    2. If you have real estate, are you planning to flip it, wholesale it or... Read More »

    3. New IRS Amnesty Program for Foreign Accounts

      June 26, 2014 | Posted in Diane's Blog, USTaxAid's Blogs

      The IRS requires you to file certain reporting returns if you have an interest in foreign financial accounts, receive amounts from foreign sources, have a foreign trust, corporation or partnership or just generally own or do business in another country. Not everyone has to file. It’s only applicable if the amounts are above certain limits that vary based on whether you are single or married or if you live in the US or outside the... Read More »

    4. Change in Repair/Capitalization Rules – Part 2

      June 25, 2014 | Posted in Diane's Blog, USTaxAid's Blogs

      The IRS has new rules for determining whether a repair expense is really a deduction or whether it is an improvement that you have to capitalize and then depreciate. Please make sure you check back on yesterday’s post for the Part 1 of this topic. And, of course, if we can help with this or any other small business or real estate topics, give us a call or drop us a note. We only work... Read More »

    5. Change in Repair/Capitalization Rules – Part 1

      June 24, 2014 | Posted in Diane's Blog, USTaxAid's Blogs

      To deduct or not to deduct? That’s always been a question for real estate investors when it comes to repair expenses. In some cases, the expense is a deductible repair expense and in other cases, it’s a capital expense that you need to treat as an asset and then depreciate over a period of years. That period of years could be as long as 39.5 years. The IRS has new regulations that have become effective for... Read More »

    6. Obamacare Penalties Up To $36,500 Say IRS

      June 23, 2014 | Posted in Diane's Blog, USTaxAid's Blogs | 3 Comments

      Employers with more than 50 FTE (full time equivalent) employees are required to furnish health insurance starting Jan 1, 2015. The term “FTE” has been misinterpreted in the media, so let’s start there. If you have a business with 120 half-time employees, you might just assume that you don’t have to furnish insurance. That’s because no one is full time. And that is true, but there is one more part to this. From the half-time... Read More »

    7. Knowledge Without Strategy Costs Doctor Big Time in Real Estate Tax

      June 20, 2014 | Posted in Diane's Blog, USTaxAid's Blogs

      When it comes to tax planning, the key IS planning. Strategy first, then implementation and round it all off with proper reporting. Through my blogs, books, webinars and home study courses, I talk about “WHAT.” But that’s often not enough to successfully figure out the “HOW TO” for your personal situation. I met with a new client, a Doctor, and discovered exactly how expensive the lack of a strategy could be. The Dr had... Read More »

    8. How Much Tax Could You Save With Real Estate?

      June 19, 2014 | Posted in Diane's Blog, USTaxAid's Blogs

      There are three basic types of investments you can make: paper assets, business and real estate. Of these, real estate can give you the best tax breaks. To understand that, you need to understand two types of expenses: deductible and non-deductible. And deductions also come in two types: actual and phantom. That’s where the gold is. An actual expense is something you spend money on. For example, if you have a business and you... Read More »

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