Tax Musings of a Burbank CPA: Book Report on “You Can Deduct That?” – How Small Business Owners Can Generate Tax Savings

A while back I reviewed Eva Rosenberg’s book: “Deduct Everything” about how to save on taxes.  Now I recently bought and finished “You Can Deduct That?” a book written by fifteen Certified Tax Coaches about how small business owners can increase deductions and save taxes.  A friend and associate of mine, Amit Chandrel, who is a CPA as well as a CTC, wrote chapter 15.  In fact, many of the CTCs writing chapters in the book are CPAs, Enrolled Agents, Chartered Financial Consultants, and one is a Certified Financial Planner. Anyway, after reading the book I was impressed with the wide range of information available to help get more tax deductions and generate maximum cash flow for businesses, including: 1. Using the Affordable Care Act to create opportunities 2. Tax planning and income shifting  3. Hidden business deductions 4. Estate planning opportunities 5. Retirement planning  6. Real estate wealth generating strategies 7. Protecting yourself from an IRS audit 8. Ways to keep your hard earned money ..and much more including a comparison of business entities.   I would recommend this book to people who have a business and don’t feel they are getting enough cash flow through tax savings and [...]

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Tax Musings of a Burbank CPA: How to Calculate Your Gain or Loss On Real Estate Sale

If you have real estate you are planning to sell, calculating any income taxes due on the sale becomes a priority. Whether you are selling a residence, a rental or an investment property (different taxes rules apply to each), calculating the gain or loss on the real estate is the first step to figuring out the taxes. The gain or loss is calculated by subtracting your tax basis and selling expenses from the gross sales price of the property.   You calculate your tax basis by taking the original purchase price of the real estate plus any additional costs that were paid through the escrow (except real estate taxes, insurance and prepaid interest), then add any capital improvements made to the property (like adding a roof, pool, modernizing a kitchen, anything that improves the value of the property; regular maintenance doesn’t count) and any fixing up expenses made to the property to sell it.  If you have a rental, you have to deduct depreciation expense taken each year you rented the property.  This will give you your tax basis in the property. Now look at your escrow – commissions, transfer taxes, escrow fees and any other expenses you are not [...]

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Musings of a Burbank CPA: Presidents Born and Dying on the Fourth of July

In this Independence Day celebration blog I want to talk about the United States Presidents who were either born or died on the 4th of July. So which Presidents have been born on the 4th of July?  The only one is Calvin Coolidge, the 30th President of the United States, who was born on July 4, 1872.  He was Vice President to Warren G. Harding, who won the  1920 Presidential Election, until 1923, when Harding died of a heart attack and made Coolidge President; he won the 1924 Presidential Election but only served one term before choosing not to run in 1928.  Coolidge ironically also died of a heart attack on January 5, 1933 at the age of 60. There were three Presidents who died on the 4th of July.  James Monroe, the 5th President of the United States, won the 1816 and 1820 Presidential Elections and served two terms as President.  He was the last of the Founding Fathers to serve as President.  He died on July 4, 1831 in New York City at the age of 73. Now we come to the strange case of John Adams and Thomas Jefferson, the 2nd and 3rd Presidents of the United States. They were [...]

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