Landlords: Review the new 199A safe harbor rule
Owners of pass-through entities (S corporations, partnerships and limited liability companies) and sole proprietors can benefit from a new deduction under Section 199A of the tax code. And now the IRS has issued new final regulations providing greater clarity that includes a safe harbor rule for rental real estate activities.
Why it matters to landlords
Generally, the deduction is equal to 20 percent of your qualified business income (QBI) for the year, including your net income from an active trade or business. However, the deduction is phased out based on income levels and whether or not you're a taxpayer in a specified service trade or business (SSTB), such as an accountant, doctor or lawyer. Other limits based on wages of non-SSTB taxpayers may apply.
Don't let price increases deter existing customers
Escalating outlays and flatlined revenue can force a business to the emergency room, figuratively speaking. If the cost of materials, loans and labor soars, drastic steps may be needed. Sometimes you can avoid price increases by slashing production costs, renegotiating leases, changing suppliers or eliminating unprofitable products.
But it's a balancing act. If you begin to charge more, even loyal customers may balk. Some may flee to competitors. Social media may bristle with negative reviews. When price increases become necessary, it's crucial to keep existing customers coming back. Consider following these suggestions:
Avoid these 3 homeowner's insurance mistakes
Looking for a way to tackle insomnia? Read your homeowner's insurance policy. Kidding aside, it's worth the effort. As many families have learned the hard way, failing to evaluate policy details can lead to unanticipated expenses when disaster strikes.
Sweat the fine print, especially if you're a first-time homebuyer, and don't make these three blunders:
Are you being audited by the IRS? Would you like to get a jumpstart on individual tax preparation? If you've been looking for tax services or accounting services, hire Morley Consulting, LLC. Our tax consultants have the skills and knowledge needed to ensure that your individual or corporate documents are correct.
If you've been searching for complete tax services or accounting services, look no further than Morley Consulting. Call our Morton, PA location at 610-544-1094, our Denver, CO location at 303-835-4757 or our Loveland, CO location at 970-663-3564 right away for a consultation.
Don't spend hours going through your corporate books or compiling your individual tax documents. Turn to Morley Consulting for:
857 Kedron Avenue
Morton, PA 19070
Phone: (610) 544-1094
7900 East Union Avenue, Suite 1100
Denver, CO 80237
Phone: (303) 835-4757
4194 North Garfield Avenue
Loveland, CO 80538
Phone: (970) 663-3564