I have to share the highlights of this tax case with you. Steven Hoakison took his case to court, where the IRS asserted that Hoakison was a collector of antique tractors, and the 40 farm tractors in dispute due to the IRS audit were purchased by Hoakison primarily for personal reasons and served no business… Read More

Let’s say you own the building.  Now, let’s say that you rent this building to your business. With no tax planning, you have a self-rental, and that makes rental income from this building nonpassive, meaning that it cannot offset any passive losses (very bad); and makes rental losses from this building passive losses, meaning that… Read More

Are you 72 or older? If so, you must take a required minimum distribution (RMD) from your traditional IRA, SEP-IRA, or SIMPLE IRA by the end of the year. If you turn 72 this year, you can wait until April 1 of next year to take your first RMD—but you’ll also have to take your… Read More

Have you sold, or are you planning to sell, commercial or rental property? To avoid immediately paying capital gains tax on your profit, you have options: Defer the capital gains tax using a Section 1031 exchange Defer the capital gains tax using a qualified opportunity zone fund With a Section 1031 exchange, you sell your… Read More

You may have noticed that the IRS is in a bad way. It has a backlog of millions of unprocessed paper tax returns, and taxpayers can’t get through to the agency on the phone. Congress noticed and took action by passing a massive funding of the IRS in the recently enacted Inflation Reduction Act. The… Read More