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What every owner needs to know Over the years, many clients had single-family homes (and sometimes duplexes or triplexes) that were traditionally rented long-term—typically 6 months to a year. In many cases, these properties incurred tax losses because expenses exceeded… Read More »Tax Tips When Converting a Long-Term Rental to Short-Term

Health Savings Accounts (HSAs) are a great way to save money. Unlike any other tax-advantaged account, they provide a triple tax benefit: 1. Contributions are tax-deductible. 2. Monies inside the HSA grow tax-free. 3. Withdrawals are tax-free if used for… Read More »Inherited HSA (Health Savings Account)

You plan to send special occasion or holiday gifts to one or more colleagues, referral partners, and select customers, and you want to deduct the cost. You can take a deduction, but the IRS limits you to $25 per recipient… Read More »Deducting Business Gifts

Many taxpayers don’t realize that simply failing to file a tax return can mean permanently losing money that is rightfully theirs. Over the years—first during my time working at the IRS and now in private practice—I’ve seen this happen far… Read More »Loss of Refund for 2022

Many married couples form an LLC to own rental property to obtain liability protection. After they create the LLC, they often ask an important tax question: Does the LLC force them to file a partnership return? The answer depends largely… Read More »LLC Ownership of Rental Property

Executive Summary Many taxpayers (and even some practitioners) assume that filing a federal extension automatically extends their state income tax return. That assumption can be costly. While some states accept the federal extension, others grant automatic extensions, and a few… Read More »State Income Tax Extensions

We’re now less than a month away from the filing deadline for your 2025 federal tax return—and state returns, if you live in a state with an income tax. Filing late when you owe taxes can be costly. The IRS… Read More »Approaching April 15th

When a personal residence is destroyed by fire, the IRS treats the event as an involuntary conversion. Special tax rules may allow you to defer or avoid paying tax on the gain, depending on how you use the insurance proceeds.… Read More »Tax Consequences of Insurance Proceeds After a House Fire

When a taxpayer files a tax return after its due date (whether the original due date or a valid extension), the taxing authorities generally assess a late-filing penalty of 5% per month, or fraction thereof, up to a maximum of… Read More »Late-Filed Tax Returns: A Costly California Trap to Avoid

Marriage has significant federal and state income tax consequences, particularly for couples who marry during the tax year and reside in a community property state. Many taxpayers are surprised to learn that the rules governing filing status and income allocation… Read More »Marriage Mid-Year and Community Property Law