Tax Deductions

Make Sure You Receive Your Tax Refund

If you filed for a tax refund and haven’t yet received it, go to the IRS Web site ( and click on “Where’s My Refund.” You will need to enter some basic identifying information to find out the status. You could also call the IRS’s Automated Tax Refund Service at (800) 829-4477. The refund information […]

Activity Grouping and the 20% QBI Deduction

For readers who own their office building, we recommended in the April 15th Newsletter the concept of “grouping” or “aggregating” the practice entity and the real estate entity in order to deduct the big real estate depreciation deductions against the practice income. This concept works on steroids with a cost segregation study that front-loads these […]

$12,000 Standard Deduction Helps Children on the Payroll

The New $12,000 Standard Deduction Will Help “Older” Children or Grandchildren Who Are Earning An Income Through Your Practice:  Many Newsletter readers employ young children in their practices so that these children become eligible to fund Roth IRAs.  The decades-long growth potential is massive even with the relatively modest contributions made each year.  If these […]

Tax-Free Loan Repayment Programs

State Payments to Doctors for Purposes of Repaying Student Loans Are Tax-Free If the Doctors Are Practicing in Underserved Areas:   Recent IRS “Chief Counsel Advice” (see CCA 201815016) gave its blessing to a state that privately asked the IRS how its program would be handled for federal tax purposes.  Under this program, the state pays […]

Here’s Some Good News from the IRS This April 15th — Audit Rates Keep Falling

Budget cuts at the IRS have had a big impact on the rates at which individuals and businesses are now being audited. In 2017, only 0.62% of individuals were audited. This is one out of every 160 taxpayers! On the business side, the rate has fallen to an astoundingly small 0.44%! Low audit rates should […]

Cost Segregation Studies for Office Building Construction Become Even More Beneficial After Tax Reform

A cost segregation study is a hybrid engineering/accounting report that analyzes the construction costs of a commercial (or residential) construction project and reclassifies large components of them from a very slow 39-year depreciation period for a commercial building (27.5 years for a residential building) to much quicker 5-year, 7-year and 15-year depreciation periods. The point […]

Avoiding Passive Activity Loss Limits Through “Aggregation”

Watch Out for the Passive Activity Loss Rules that Limit Losses from Passive Investments Like Real Estate to Income From Your Passive Activities: The big up-front tax deductions from the real estate build-out will normally be limited to your rental profit. If you own your practice in one entity, say an S corporation, and you […]

Transportation Benefits for Staff

Reimbursing an Employee’s Commuting Expenses Are Non-Deductible to the Employer: Say you have an employee who lives far from the office and you would like to find a way to reimburse her fuel costs driving to and from work. Commuting expenses are generally non-deductible, so if you want to make a cash payment to her, […]

Home Offices Eliminate the Non-Deductible Auto Commute

If you satisfy the following two tests, then you can eliminate your non-deductible personal commute and deduct a pro-rated portion of your homeowner operating expenses based on the square footage of the home office compared to the overall square footage of your home: (1) Your home office is a room used exclusively and regularly for […]

Buying a Heavy SUV in Your Last Years of Practice

Maybe it’s time for a new car.  And, maybe you’re considering selling your practice and retiring in the near future.  As you now know, one of the big changes in the 2017 tax act is full immediate deductions for new equipment purchases.  Heavy sport utility vehicles, those with gross vehicle weight ratings over 6,000 pounds, […]

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