Did You Know Federal Taxes are DO December 31! – DAVID RANDOLPH

Did You Know Federal Taxes are DO December 31!

Well of course you know they do not need to be filed (DUE) Until March 15 (LLC) or April 15 (Self-employed) BUT you need to make all the actual expenses and revenue decisions in the year of 2019 by Dec 31. For example, have you bought the stamps/computers/printers you need for the coming year? Have you taken the salary you need to meet S corp rules? Have you made your REQUIRED Solo 401K contribution? DO YOU HAVE RENTALS? 

You need to DO your taxes now. 

Also, this one is great for Rentals and small businesses. Did you know for expenses you can elect “de minimis safe harbor”? This means you can directly and immediately write off any single expense up to $2500. Even carpet, appliances, etc. Make sure you have separate receipts EACH under $2500. BUT you must make this election in 2019 by Dec 31 for the year 2020 (yes too late for 2019). The election is a piece paper stating certain things. The 2nd thing you must do for the year the expense occurred is when you file your taxes you must attach a statement to your return stating you made the election. Send me a message if you need help finding that document, I am sure you already filled it out this year. This directly reduces your income for the year reducing your taxes instead of depreciating items. 

You need to DO your taxes now. 

Speaking of income did you know that you can reduce your income by 20% and not pay any taxes on it? Yes, make $100K and only pay taxes on $80K. This was part of the new 2018 Tax laws (section 199A) which are in affect today. But you need to know how to look like a Trade or Business. 

I am often asked to speak at various monthly REIA meetings and last year (18 Sept 2018) STLREIA (St. Louis Real Estate Investors association) invited me to speak on the New 2018 Real Estate Tax law changes. My Presentation of the new 2018 Tax laws was on how they affect your real estate business (rehabs, rentals, wholesales, Realtors, etc.) or any other small business. These laws are in effect for a number of years so you should be implementing these in your small real estate business NOW to make sure you get the section 199A 20% reduction right off the top in your trade or business income (you do know what that is right?).

If this is something you would like to have, my 54 Slides, and to watch the video at no cost, then please message me your email and contact info. 

David Randolph

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