Tax & Accounting Insights for Irvine, CA. Expert Guidance from Bharmal CPAs
Rules to know When Renting a Room of Your Personal Home
Rules to know When Renting a Room of Your Personal Home You must consider the vacation home rules when you rent a bedroom in your home and also use it personally, or rent your beach home (or any other home you own) and also use it personally. Personal Use of the Dwelling Rent or use by relatives. Personal use includes [...]
Which IRA is Better For you: Roth vs Traditional
Which IRA is Better For you: Roth vs Traditional Roth IRA versus traditional IRA: which is better for you? Roth IRAs tend to get a lot of hype, and for good reason: Because you pay the taxes upfront, your eventual withdrawals (assuming you meet the age and holding-period requirements—more on these below) are completely tax-free. While we like “tax-free” as [...]
Beware: IRS Published Error on Rental Property Deduction – Mortgage Insurance
Beware: IRS Published Error on Rental Property Deduction - Mortgage Insurance Here’s a heads-up on mortgage insurance. Personal Residence Mortgage Insurance: The deduction for mortgage insurance on a qualified residence ended on December 31, 2017. But don’t give up on the deduction. The personal residence mortgage insurance deduction is part of what is called “tax extenders,” and it’s highly possible [...]
Fraudulent Form 1099s
Here’s a true story from the IRS. To put the story in context, we are putting you in the driver’s seat. You Buy a Vehicle You buy a new vehicle from your local dealership with zero percent financing. You complete all the paperwork, including the purchase order and vehicle registration, and leave the dealership owning the vehicle. Dealer Mistake The [...]
10 Proven Tax Strategies for the Self-Employed
10 Proven Tax Strategies for the Self-Employed As a self-employed individual, you can feel overwhelmed when you search for strategies to reduce your taxes. We searched one of our tax services and found more than 263 articles with the words “self-employed” or “self-employment.” That’s a lot. Where do we start? Let’s start with the following 10: 1. Use the Section [...]
Impact of Death, Retirement and Disability on the 179 Deduction
Impact of Death, Retirement and Disability on the 179 Deduction What tax effect would death, retirement, or disability have on you or your business? Here’s an easy example to illustrate. Let’s say that in 2017, you purchased for business use a pickup truck with a gross vehicle weight rating greater than 6,000 pounds. Asserting that you use the pickup 100 [...]