Tax concepts explained simply

Tax Topic

Capital Gains Tax

Short-term capital gains (assets held less than one year) are taxed as ordinary income (10-37%). Long-term capital gains

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Tax Topic

1031 Exchange

A 1031 exchange (like-kind exchange) lets you defer capital gains tax and depreciation recapture when you sell an invest

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Tax Topic

Hobby vs. Business

The IRS considers several factors: whether you operate with a profit motive, keep business-like records, depend on the i

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Tax Topic

Estimated Tax Payments

Federal estimated tax payments are not deductible on your federal return — they're prepayments of tax you owe, not expen

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Tax Topic

FICA Taxes

For employees, FICA taxes withheld from your paycheck are not deductible. For self-employed individuals, you can deduct

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Tax Topic

QBI Deduction (199A)

The Qualified Business Income (QBI) deduction lets eligible self-employed individuals and pass-through business owners d

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Tax Topic

LLC Tax Deductions

LLCs can deduct all ordinary and necessary business expenses: office space, equipment, supplies, insurance, professional

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Tax Topic

1099 Requirements

You must file a 1099-NEC for any non-employee (contractor, freelancer, etc.) you paid $600 or more during the tax year f

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Tax Topic

Rental Property Depreciation

Residential rental property is depreciated over 27.5 years using straight-line depreciation. You depreciate the building

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Tax Topic

Section 179 Deduction

Section 179 allows businesses to deduct the full purchase price of qualifying equipment, vehicles, and software in the y

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Tax Topic

Bonus Depreciation

Bonus depreciation allows businesses to deduct a large percentage (up to 100% under the One Big Beautiful Bill Act) of t

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