Author Archives: GavTax

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 […]

COVID-19, CARES Act and Deadline Delays and Extensions

covid-19 cares act

In light of the new global pandemic, the CORONA virus, also known as the COVID-19, significant changes have been introduced by the Treasury, the IRS and the Federal Government. Here is fully updated detail on covid-19 cares act in US. What is the Covid-19 CARES Act? Also known as the Coronavirus Aid, Relief and Economic […]