The Tax Professionals Blog
Short-Term Rentals
Posted by Lee Reams Sr. on
Many taxpayers will rent their first or second homes using rental agents or online rental services that match property owners with prospective renters, such as Airbnb, VRBO and HomeAway. When a taxpayer rents property for a short period, special (and sometimes complex) taxation rules come into play, which can make the rents excludable from taxation; other situations may force the rental income and expenses to be reported on Schedule C (as opposed to Schedule E)Back-Door Roth IRAs
Posted by Lee Reams Sr. on
High-income taxpayers are limited in the annual amount they can contribute a Roth IRA. In 2016, the allowable contribution phases out for joint-filing taxpayers with an AGI between $184,000 and $194,000 (or an AGI between $0 and $9,999 for married taxpayers filing separately). For unmarried taxpayers, the phase-out is between $117,000 and $132,000.The Ins-and-Outs of Times Shares and Use as Charitable Contribution's
Posted by Lee Reams Sr. on
Taxpayers sometimes donate a time-share week to a charitable auction, leading to questions about whether this is deductible as a charitable contribution.
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.