Do you provide car rides through a mobile app, rent out your spare room using an online platform or repair computers for local businesses on demand? If so, you may be considered part of the "sharing economy" (also known as the Gig or on-demand economy).
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In recent years, the IRS has ovvered "green" tax credits to individuals who purchase qualifying residential energy-efficient equipment and certain electric vehicles. Some of these breaks expired at the end of 2016. But others are still ripe for the taking in 2017 and beyond. Here's what you need to know to take advantage.
It's already starting to feel like summer in many parts of the country. But the forecast for Washington remains unclear as officials continue to discuss various tax-related issues.
Real estate owners who rent their properties often incur tax losses due to depreciation write-offs and other allowable deductions. However, the ability to deduct those losses might be postponed indefinitely by the passive activity loss (PAL) rules.
Do you materially participate in a business or rental activity -- or are you just a passive investor who isn't directly involved in a project's day-to-day operations? The IRS has prescribed seven tests to help individuals classify income, gains and losses from activities as passive or nonpassive. (See "PAL Basics" below.)
Do you have an interest in -- or authority over -- a foreign financial account? If so, the IRS wants you to provide information about the account by filing a form called the "Report of Foreign Bank and Financial Accounts" (FBAR).
If you own a profitable, unincorporated business with your spouse, you're probably fed up with high self-employment (SE) tax bills.
If you operate your business as a sole proprietorship, a single-member LLC (treated as a sole proprietorship for tax purposes), or a husband-wife partnership, here's a great family tax planning deal: Hire your under-age-18 children as legitimate employees of the business. It doesn't matter if they work part-time or full-time.
Did you know that, once you turn age 701/2, you must start taking mandatory annual withdrawals from your traditional IRAs, including any simplified employee pension (SEP) accounts and SIMPLE IRAs that you set up as a small business owner?