Michael Plaks

"Black Belt in Real Estate Taxation"

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Bookkeeping – for the IRS or for your business?

   December 9, 2013   Bookkeeping/Accounting

[…] For bookkeeping purposes, the entire $1,000 has been spent the moment you signed the paperwork. What you have now is simply a loan from BestBuy. It’s between you and BestBuy, and the IRS can’t care ..

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Five simple ways to save money with better real estate bookkeeping

   November 4, 2013   Bookkeeping/Accounting

[…] Occasionally (hopefully), your business account will be short. A common mistake is to then pay out of personal account. Don’t! Instead, make it two steps: transfer money from personal acc..

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The Number One strategy to save thousands of dollars on your business taxes

   November 1, 2013   Bookkeeping/Accounting

[…] It gets worse. My first example was a make-ready between tenants. What if this painting job was done on a flip house you’re preparing to sell? Well, your extra tax on the forgotten $1,000 labor could easily be ..

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Not all tax professionals are!

   September 9, 2013   IRS problems

[…] Depends on who you hire, as you will see from the recent IRS announcements. The list includes both one-person businesses and large franchise operations. Also, this Hall of Shame includes a tax attorney, a CPA, and even an..

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Deadly tax trap: owner-financing flip properties

   September 3, 2013   Real estate taxes

[…] Now, who would walk away from this juicy deal, may I ask? Answer: anybody with a basic understanding of IRS taxes. Here is the deadly trap I was referring to: the IRS will tax Andrew on his entire..

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How long should I keep receipts for the IRS?

   May 9, 2013   Bookkeeping/Accounting

[…] for the property that you own (cars, real estate, investments) you should keep everything until 3 years after you sell it. If you bought some stock back in 1995, and you sold it in 2013 – hold on to your 1995 purchase documents u..

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Deducting Disneyland trip as business travel?

   May 9, 2013   Business taxes

[…] Now the newly enlightened artist had $30,000 of so-called business expenses (including, you guessed it, a Disneyland vacation, err, business trip) and a huge tax refund. This money came handy and was promptly spent. Shortly after, she also..

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IRS grabbed my bank account – what can I do?

   March 4, 2013   IRS problems

[…] One missed payment will never be a reason to freeze your bank account. Also, before freezing your money, they should have sent you multiple warnings by mail, the last one by certified mail. Did you recently move and not receiving your mail, by cha..

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Business start-up expenses – can I deduct them?

   March 4, 2013   Business taxes

[…] With a business like yours, the start date is somewhat subjective. It could be the date when you received your first order. It could be the date when you first advertised your busi..

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Obamacare will tax your rentals – is it true?

   February 22, 2013   Personal taxes, Real estate taxes

[…] I can see 3 scenarios where this tax can affect real estate investors with high overall income. Interest from owner-financed properties, especially with wraps. In a wrap situation, you will not be able to offset the interest you receive from the outside ..

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