The Tax Professionals Blog
Rental Cars & the Standard Mileage Rate
Posted by Lee Reams Sr. on
Can an individual rent a vehicle for business purposes from a car rental agency such as Hertz or Budget and deduct the standard mileage rate as opposed to deducting the rental fee?
The Tax Implications of Renting to a Relative
Posted by Lee Reams Sr. on
When a taxpayer rents a home to a relative for long-term use as a principal residence, the tax treatment of the rental depends upon whether the property is rented at fair rental value or rented at less than the fair rental value.
Tax Treatment of a Marijuana Business
Posted by Lee Reams Sr. on
As marijuana businesses have been legalized in many states (24 at last count), the issues of how they can report their income and pay their taxes are relevant to more tax practitioners than ever before.Can the Teachers’ Classroom Supplies Deduction Exceed $250?
Posted by Lee Reams Sr. on
Congress, recognizing that most classroom teachers spend a significant amount of their own money on classroom supplies, granted them a special deduction of $250 (indexed for inflation after 2015) as an adjustment to gross income – referred to as an above-the-line deduction – rather than an itemized deduction.
Maximizing Investment Expenses
Posted by Lee Reams Sr. on
Investment expenses are deducted from investment income when determining net investment income (NII). NII is used in two important tax computations: the 3.8% Sec 1411 tax on net investment income (NIIT) for higher-income taxpayers and the limitation on the deductibility of investment interest, Sec 163. Investment interest can only be deducted to the extent of gross investment income less allowable investment expenses. Therefore, it is important to understand what is classified as investment expenses for both computations.