Immediate Tax Benefits for Business Property - Section 179 Provides Generous Tax Break

There is a unique tax break for business entities of all shapes and sizes contained in Section 179 of the Internal Revenue Code. Under this section, a business can elect to “expense,” or currently deduct, the cost of qualified property placed in service during the year, up to a maximum level. It is near-instant tax gratification.

Continue reading
527 Hits
0 Comments

The Rules for PALs Are Not Friendly - Maximize tax benefits for passive activities

Do you own investment real estate—say, an apartment building—that you rent out to tenants? Real estate can be a valuable and reliable source of income. Of course, the rental income is subject to tax, but the resulting tax liability may be offset by deductible expenses. In some cases, you might even qualify for a loss.

However, there is another wrinkle in the tax law. The loss may be disallowed under the passive activity loss (PAL) rules.

Continue reading
899 Hits
0 Comments