RMMC, PC

Corporate Transparency Act: If you have an established company that registered with a Secretary of State office, including LLCs or are planning on starting a new company in 2024 or beyond, read this carefully. The Corporate Transparency Act (CTA) may require you to file Beneficial Ownership Information (BOI) as required by THE Financial Crimes Enforcement Network (FinCEN) [...] https://bit.ly/4el8Odb

Ease the financial pain of natural disasters with tax?relief: Hurricane Helene has affected millions of people in multiple states across the southeastern portion of the country. It's just one of many weather-related disasters this year. Indeed, natural disasters have led to significant losses for many taxpayers, from hurricanes, tornadoes and other severe storms to the wildfires again raging in the?West. If your family [...] https://bit.ly/3A4ooLQ

Interest tracing: Not all types of interest payments are deductible, and the interest tracing rules for deducting interest depend on the purpose of the loan—whether it's for personal, investment, or business use. You must follow the loan proceeds to what they were used for in order to determine the purpose. Interest expenses can fall into the [...] https://bit.ly/3XHxerY

Travel in the US, abroad and spouses accompanying: If you own a business or are self-employed and travel for business purposes, you need to know how much of your travel expenses are deductible. Often people either deduct more than allowed or they don't deduct enough, assuming the expenses are not deductible. Travel expenses are only deductible if you own your own business [...] https://bit.ly/3Zfbghe

You can still defer taxable income in a like-kind exchange when there is a delay in receiving the replacement property. In this article we will review the requirements, reverse deferred exchange options, and related party transactions.

Happy Labor Day weekend!

If you're planning to move to a new home but are having trouble selling your current one, renting out your current residence until the market improves could be a viable option. While you're likely aware of the economic risks and benefits, it's also important to understand the potential tax implications of renting out your home. First before you make any decisions, always keep in mind that if you sell your principal residence, you may be able to exclude some or all of the gain for tax purposes and converting to a rental could cost you that savings. To exclude gain, you must have owned AND lived in the house, two of the past five years and you can only use this exclusion once every two years. The exclusion limits are $250k for single filers and $500k for married couples filing jointly. If you do not meet the full two-year requirement due to specific circumstances (such as a change in employment, health issues, or other unforeseen circumstances), you might still qualify for a partial exclusion. If you do convert to a rental but sell before you lose the exclusion, you still must recapture any depreciation claimed on the property and gains attributable to periods of nonqualified use are not eligible for the exclusion. If you are converting the property to a rental because the value has went down since you purchased it, keep in mind that you will not be able to deduct this loss when you sell the rental property in future years. Your basis for the property is the lower of the original price or the fair market value (FMV) when it is converted to a rental property. Once you decide to convert the home to a rental, you have moved out and it is available for rent, you'll be treated like any other landlord for tax purposes. This means you'll need to report rental income on your tax return, but you'll also be able to claim deductions for expenses like utilities, operating costs, interest, insurance, management fees, hoa dues, and repairs, as well as depreciation on the property. While these deductions can offset your rental income, the passive activity loss (PAL) rules might limit your ability to deduct any excess expenses unless specific exceptions apply. For example, if your adjusted gross income is under $100,000, you actively participate in managing the rental, and your total rental real estate losses don’t exceed $25,000, you may not be affected by these limitations. Remember tax considerations are not the only things to factor. Make sure to contact your lender if you have a loan on the property and your insurance agent to change the insurance policy to reflect it as a rental use property. There may also be legal implications that you will want to consult an attorney on.