Author Archives: Qingqing Liu

Tax Notices and You

Did you receive an IRS notice and you are not sure what to do? Congratulations! You are one of the millions of taxpayers who were lucky enough to receive an IRS notice/letter this year. Please do not pull out your hair, help … Continue reading

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Qualifications of Like-Kind Exchange

A 1031 like kind exchange provides taxpayers the opportunity to defer gain realized from the sale of property. As is true with other relief measures, the tax law has created specific eligibility rules that must be satisfied to qualify for … Continue reading

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What is Net Investment Income Tax?

Starting with the year 2013, taxpayers may be subject to an additional surtax of 3.8% on their net investment income. This surtax is called the Net Investment Income Tax (NIIT). Who is Subject to the Net Investment Income Tax? The … Continue reading

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The Self-Rental Rule You Should Know

In general, a passive activity is any activity which involves the conduct of any trade or business, and in which the taxpayer does not materially participate. Passive activity includes any rental activity. IRS provides that a taxpayer is treated as … Continue reading

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Setting Reasonable Compensation for S Corporation Shareholder-Employees

Since an S-Corporation is not taxed at the entity level but rather each owner is taxed at the individual income tax rate on his or her respective ownership percentage of the business income, typically, the shareholder-employee wants to minimize compensation … Continue reading

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How Long Should You Keep Tax Records After Tax Day?

It’s true that the Internal Revenue Service wants you to hang on to your important records. But you don’t have to keep all of your tax and financial records forever. Generally, you must keep your records that support an item … Continue reading

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Defer Your Taxable Gain with Installment Sales Methods

Installment sales, where you receive payments in more than one tax year, let you defer tax on sales until you actually receive those payments. Tax is divided among the actual installments and due as you receive them. Here’s how it … Continue reading

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Tax-Smart Cash Choices

Cash and cash equivalents such as CDs, savings accounts, and money- market funds, are core parts of most asset allocations, as anchors to limit portfolio volatility and safe harbors from choppy markets. But cash is the least tax-efficient investment. Bank … Continue reading

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Tax Strategies for Americans Abroad

The United States taxes citizens and resident aliens on all income earned worldwide, including earned income and investment income. However, you have several ways to avoid U.S. tax on income already taxed by a foreign country. If you’re working in a country … Continue reading

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Keep Smart Records to Audit-Proof Your Return

“Audit-proofing” your return means documenting deductions so that you can prove them if you’re audited. Today’s historically low audit rates make it pay to be aggressive. But you should file your return as if you expect to be audited. That … Continue reading

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