Nothing stops an S corp from buying a rental. The trouble shows up later: a taxable exit, a mortgage that doesn't count toward your basis, and heirs who only get half a step-up.
Read postThe Journal
Notes on tax strategy.
Weekly writing on the planning conversations that move the needle: S-Corp elections, equity compensation, real estate, and the IRS rules behind them.
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IRS Letter 5071C: Verify Your Identity Inside 30 Days.
The IRS stopped your return because a filter thinks somebody else filed it. Nothing moves until you answer, and the answer takes about half an hour online.
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IRS Holding My Refund for Review: Nothing to Do for 60 Days.
A CP05 means the IRS is verifying what you reported before it pays you. The notice asks you for nothing, and once the refund passes 45 days after April 15 the delay starts paying you 7%.
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Do You Pay Taxes on a Gift of Money? The Recipient Never Does.
Money someone gives you is not income, and there is no amount at which it becomes income. The $19,000 figure everyone quotes is a filing line for the person writing the check, and they usually owe nothing either.
Read post1099 Received After Filing Taxes: Check Before You Amend.
A late form doesn't always mean missing income. Match it to the return you filed before adding the payment again or paying for an unnecessary amendment.
Read postTaxes on Flipping a House: Why Your Profit Is Not a Capital Gain.
A flip is taxed at ordinary rates no matter what you call yourself, and dealer status takes the long-term rate off the table permanently. On $100,000 of profit in 2026, that difference is $8,944.
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Taxes on a Lawsuit Settlement: The Physical Injury Line Decides It.
Damages that compensate a physical injury are not income at all. Everything else is, including the 40% your attorney keeps, which is why two $300,000 settlements can differ by $36,200 of federal tax.
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Do You Pay Taxes on Scholarships? Only the Part Above Tuition.
A Form 1098-T with box 5 bigger than box 1 is not a school error, and it usually does mean the student owes something. The number is smaller than it looks: a $68,000 award against a $48,000 tuition bill runs about $600 of federal tax.
Read postTax Breaks for Having a Baby: What a 2026 Newborn Is Worth.
A baby born on December 31 earns the same $2,200 child tax credit as one born in January. The part that costs new parents real money is the Social Security number deadline, and an amended return can't fix it.
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Haven't Filed Taxes in Years? The IRS Usually Wants Six.
Six years is the IRS's usual enforcement starting point, not permission to ignore older returns. Get the records, claim supported expenses, and protect any deadline already running.
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Simplified vs Actual Home Office Deduction: Run Both Numbers.
The easier method can leave a larger deduction unused. For a freelancer renting an apartment, the same office can produce a $1,200 simplified deduction or $5,400 using actual expenses.
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Filing Taxes After a Spouse Dies: One Last Joint Return.
The year your spouse dies is the last year you can file a joint return, and the standard deduction is not prorated. The year after, the same $132,000 of income costs $9,659 more in federal tax and the rate on your last dollar goes from 12% to 24%.
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1099-K for Selling Personal Items: Tax the Gain, Not the Deposit.
Selling your old laptop doesn't turn the deposit into taxable profit. Separate each item's cost from its selling price, and don't use personal losses to erase a gain on something else.
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