Tax & Accounting Insights for Irvine, CA. Expert Guidance from Bharmal CPAs
Releasing Your Passive Losses
As you may know, the rental property rules have prevented you from deducting your passive losses in prior years. That’s the bad news. The good news is that you release suspended losses when you sell one or more of the properties that are creating the losses. This is true regardless of whether you sell the property at a gain or [...]
Traits of Successful Team Players
Whether you’re forming a fully self-directed work team or leading a group that just needs to collaborate effectively, you must recruit the right people. Keep your eyes open for these abilities and traits: Willingness to contribute Is the person ready to put the team’s goals first? This doesn’t mean ignoring personal needs, but it does mean that team members must [...]
Tax Benefits of Hiring Your Child
You can pay your child to work in your business and get paid for paying your child. The basic mechanics of this are (a) you deduct the wages and (b) your child pays zero or very little in income taxes. The three points below elaborate on this: The child (a single taxpayer) pays zero taxes on earnings up to the [...]
Retirement Savings Mistakes to Avoid
Make one or two mistakes in handling your retirement money, and you could be paying a stiff penalty later in your life. The stock market goes up and down, but you’ll survive if you stay clear of these common mistakes: Obsessing about market losses: Focus instead on your long-term needs. Catastrophic events and long-term health care needs cause as much [...]
Avoid Recapture Tax When Selling Your Home
As you likely know, the depreciation you claim with your home-office deduction is subject to a recapture tax when you sell your home. How would you like to not pay the recapture tax? You may be able to do just that by following one easy step when it comes time to sell your current home and buy a replacement. When [...]
What’s Miscellaneous Deductions?
What do we mean by “miscellaneous deductions”? Miscellaneous deductions are tax breaks that generally don’t fit into a particular tax category. They can help reduce taxable income and the amount of taxes owed. For example, some employees can deduct certain work expenses like uniforms as miscellaneous deductions. To do that, they must itemize their deductions instead of taking the standard [...]