Author Archives: GavTax

Active and Passive Investing in Real Estate

Real Estate Investing can be classified under 4 types: residential, commercial, industrial and land, Residential can be both single and multi-family homes, townhomes, condominiums. Commercial can be offices, retail space, restaurants, and large multi-family homes. Industrial includes warehouses, factories, powerplants generally used for industrial businesses. Land comprises of unused or used primarily as undeveloped land. […]

How can we help you get your PPP and EIDL?

The latest round of Paycheck Protection Program(PPP) funding opened one month ago and already the new Administration has succeeded in making major improvements to the program’s implementation for businesses with fewer than 1-10 employees(including the owner), the share of funding is up nearly 60%. Which just means more financial support available to sole proprietors, independent […]

S-Corporations- Overview, Filing Mandates, Pros & Cons and Termination/Revocation

Q: What is an S-Corporation? Why choose S-Corporation Status? First of all, S-Corporation is not an entity type. Its an election that needs to be made on Form 2553, Election by a Small Business Corporation. An LLC or a sole proprietorship can elect to file as an S-Corporation. Q. When to make the S-Corporation election? […]

What type of records should businesses maintain for tax purposes?

tax records management

Some of the common questions that I get are– How do I do record keeping for my business transactions? What kind of proof is required at the time of an IRS audit? What constitutes efficient recordkeeping? And I tell my clients that there are three main types of business records: income, expenses and capital expenditures. […]

Child Tax Credit

Child Tax Credit in USA

What is Child Tax Credit? Child Tax Credit is a non-refundable credit that reduces your tax bill dollar for dollar. The maximum amount that can be claimed for the credit is $2,000 for each child under the age of 17 who qualifies for the Child Tax Credit (CTC). Whether you would qualify for a CTC […]

Common Tax Deductions for Real Estate Entrepreneurs­­­

common tax deductions for real estate

Most real estate professionals are sole proprietors. This means that they are not someone’s employee, they have not formed a partnership with anyone, and they have not incorporated their business. They could work using their Social Security Number (SSN) or can also apply for an Employer Identification Number (EIN) with the IRS. The article covers […]

5 important things to consider when it comes to Rental Properties, Depreciation and Taxes

Depreciation is an accounting mechanism for recovering the cost in an income producing property (a   property that is used only for business or investment purposes). It is a capital expense and allows the owner of the rental property to spread the tax benefit of qualifying expenses over a certain lifetime. For residential rental properties, depreciable […]

Sec 1031- Like Kind Exchange as a tax deferment strategy- Paper 1

Sec1031 Like-Kind Exchange

Usually, selling a business or an investment property and then using its proceeds to buy a similar property becomes a taxable transaction. However, there is a way to avoid that and that is by allowing a Sec 1031 – Like Kind Exchange. What is a Sec 1031- Like Kind Exchange? It is a simultaneous swap […]

Sec 1031- Like Kind Exchange as a Tax Deferment Strategy- Paper 2

Sec 1031 - Like Kind Exchange (Paper 2)

Sec 1031 – Like Kind Exchange Paper # 2 is in continuation to Paper # 1 which was also on Sec 1031- Like Kind Exchanges. The latter can be found on my website at www.gavtax.com and also on my Facebook and Linkedin pages. In the first paper, the definition, benefits, eligibility, what types of properties […]

Economic Impact Payments for Individuals in USA – Who is Eligible, Who is Not and How much is it Worth

The United States Treasury Department and the Internal Revenue Service has released figures for Economic Impact Payments, with 89.5 million individuals receiving payments worth nearly $160 billion in the program’s first three weeks. Another projected 150 million payments will be sent out and even those who typically do not file a tax return will also […]