Entity Structure Questions & Answers (Part 2)
Friday, June 03
This is the second of a four part series of Questions and Answers related to entity structuring.QUESTION: In 2005 I entered into a partnership with my brother and a couple of friends. We purchased a single family house to rent out. We (over)paid around $127,000 for the house. The property is titl...
Entity Structure Questions & Answers (Part 1)
Friday, May 27
Selecting the right entity structure for your real estate deal can mean the difference between building and losing incredible wealth. It's vitally important to incorporate correctly to protect yourself, your assets and your wealth. I get a lot of questions about entity structuring, particularly o...
Automatic Pre-Audit Preparation
Friday, April 22
Everyone should do their upmost to prevent an audit on their taxes, but you should always be prepared for an audit. The best way to increase your chances of coming out of audit unscathed is to keep excellent records. The IRS will not take your word as proof of anything, so it pays to have as much...
IRS Audit Prevention Tips
Friday, April 01
There are many ways to reduce your chances of being audited by the IRS. As we've discussed in previous articles, the IRS has red flags for certain industries and tax filing behavior. Unfortunately, real estate investors and business owners stand a far greater chance of being audited than their sa...
Critical Review Areas that IRS Target for Audits
Friday, March 04
Approximately 1.5% of all taxpayers are audited every year. Despite this relatively small number, the IRS still causes many people to shake in their boots when contemplating the chance of an audit. The odds are low that you would be picked for an IRS audit because the IRS does not have enough per...
Keep More of Your Money this Tax Season (Year End Tax Planning)
Friday, February 26
The Difference Between Tax Preparation and Tax PlanningTax preparation for the March 15th or April 15th return is not considered advance tax planning. It is merely tax compliance as opposed to voluntary tax reduction planning. Though returns aren't due until April, they cover a tax year that ends...