Tax Deductions Related to Charity Auctions

It is common practice for charities to hold auction events where attendees will bid upon and purchase items. The questions often arise whether (1) the money spent on the items purchased constitutes a charitable donation and (2) what kind of charitable deduction the individual who contributed the item is entitled to. 

The answer to the first question is some, but not all, of what’s paid for the item may be deductible. So, if you purchase items at a charity auction, you may claim a charitable contribution deduction for the excess of the purchase price paid for the item over its fair market value.  Fair market value being the amount the item would sell for on the open market when the parties to the sale are aware of all the facts, are acting in their own interest, are free of any pressure to buy or sell, and have ample time to make the decision.

You must be able to show, however, that you knew that the value of the item was less than the amount you paid for it. For...

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Real Estate Tax Incentives


If you're a real estate investor, and you're paying a lot of tax, you're doing something wrong!

In this video, I'll show you more tactics and strategies for maximizing rental property tax benefits and increasing your rental property cash flow. We'll go over:

-- rental income tax deductions
-- rental property expenses
-- repairs versus improvements
-- tax reduction strategies

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Rental Property Tax Benefits


Do you need more cash? Well, if you're a real estate investor, you're probably sitting on it as we speak!

In this video, I'll teach you about various rental property tax benefits and tax strategies for real estate investors, including the following topics:

-- rental income tax deductions
-- rental property expenses
-- how to avoid paying taxes
-- after tax cash flow
-- depreciation explained

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Business Tax Deductions


Are you overpaying on your taxes? Most people are!

In this video, we'll go over tax planning strategies as well as business tax deductions. Some specific topics we'll be discussing:

-- after tax cash flow
-- tax savings strategies
-- qualified business deduction
-- how to reduce self employment tax

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Real Estate Tax Benefits


In this video, we'll provide an introduction to real estate tax benefits and rental income tax deductions.

Real estate investing is a tried and true method when answering the question of how to pay less taxes. It's also one of those assets that generate cash flow: passive income that can replace the earned income you get from a 9-5 job. This is why we feel so strongly about the power of real estate investing.

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Tax Planning Strategies

tax deductions taxes Aug 27, 2021

In this video, we'll cover more tax planning strategies and ways to pay less tax and increase cash flow.

You'll find out how you can apply various business tax incentives to accelerate your after-tax cash flow and then funnel that cash towards increasing your net worth. These tax savings tips are invaluable to your success at building wealth!

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Qualified Business Income Deduction & the Ultrawealthy

On August 11, ProPublica released their latest tax article in its ongoing series exposing the advantage the ultrawealthy have with regard to taxes.
This one delves into the Qualified Business Income (QBI) deduction that goes to pass-through entities, and how the ultrawealthy benefitted disproportionately from it.
Stunning how it reveals exact numbers from individual tax returns from the owners and executives of firms like Uline, Bechtel, Vornado, etc.
Read on and let us know what you think in the comments!
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You Can Expense Business IT Purchases

Article Highlights

  • Depreciation
  • Material & Supply Expensing
  • De Minimis Safe Harbor Expensing
  • Routine Maintenance
  • Bonus Depreciation
  • Section 179 Expensing

Thanks to some very liberal tax laws written to encourage investment in personal tangible equipment, including information technology (IT) equipment, many businesses will be able to expense (write off as a tax deduction) all such assets purchased and placed in service before the end of the tax year. For businesses using the accrual method of accounting, the purchase must have been completed and the equipment placed in service before the company’s year-end.

There are a number of ways to deduct IT costs, and the best method should be based upon the need for a current-year deduction, while also considering that the deductions may be more beneficial in a future year. So careful planning is required.

  • Depreciate – The most conservative method of writing off the investment would be to depreciate the various...
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Working from Home? Is there a Tax Deduction?

Article Highlights:  

  • COVID Work from Home Requirements
  • Employee Versus Self-employed
  • Qualifications
  • Actual Expense Method
  • Simplified Method
  • Home Office Expenses for Renters vs. Homeowners
  • How Moving Affects the Home-Office Deduction
  • Other Issues
  • Gross Income Limitation

Many individuals, because of the COVID pandemic, have been forced to work from home in order to curtail the spread of the virus. A frequent question is do they qualify for a special tax deduction for using their home as a workplace? 

The tax law includes  a deduction when you use part of your home for business; however, the bad news is the home office deduction for employees was suspended through 2025 by the Tax Cuts and Jobs Act (TCJA) that went into effect in 2018. So, currently employees cannot take a home office deduction.

Employees may want to discuss with their employers the possibility of being reimbursed for the costs associated with using the home for the benefit of the employer, such as a...

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Tax Court Decision Holds Potential Impact for Travel Deductions

tax deductions taxes travel Jun 14, 2021

There are many professions that require taxpayers to travel extensively and spend significant amounts of time in paid lodging. These expenses are traditionally claimed as travel deductions. However, a case recently heard by the Tax CourtSoboyede, TC Summary Opinion 2021-3, 1/26/21 – has apparently established a new standard for what the IRS is to consider your tax home, and it’s not necessarily the same place that you think of as your primary residence.

The case centered on an attorney with his own law offices in both Minnesota and Washington, D.C.  In the tax year in question, 2015, he spent 54 days in Nigeria and spent the rest of his time working in one or the other of his offices. Multiple companies paid him $46,130 for document review work that year, with $38,548 attributed to work performed in Washington, D.C., where he either stayed in a hotel or an apartment for at least 161 days and incurred a total of $8,400 in travel expenses, which he deducted....

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