ChatGPT said: Under both federal and California tax law, a portable ADU (Accessory Dwelling Unit)—such as a modular home—placed on your primary residence’s property and used as a rental unit can be deductible, but the deductibility depends on how the expenses are categorized and the percentage of use. Here’s a breakdown: 1. Federal Tax Treatment (IRS) If the ADU is placed on your property and used as a rental, it is treated like a rental property. That means: ✅ Deductible

Terms: The date in front refers to the effective date or the effective time period if limited   Business Taxable Income : The Qualified Business Income Deduction [QBID] was made permanent  and improved. This is substantial for most business owners, and refers to the 20% reduction in taxable business income that was set to expire on 12-31-25. For Specified Service Trade or Businesses - such as law, accounting, health, athletics, performing arts  and such - the phase-out still

Terms: The date in front refers to the effective date or the effective time period if limited MAGI refers to Modified Adjusted Gross Income, which is your total income less things like IRAs, student loan interest, etc. EV Electric Vehicle Individual Tax Provisions Credits – 1/1/25 – Child Credit is raised from $2,000 to $2,200 for children 16 years of age or younger at year end. For older qualified dependent children, the annual credit is $500. EV Credit is no longer avail

Find below the direct quote from the IRS Small Business and Self-Employed Website http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/S-Corporation-Compensation-and-Medical-Insurance-Issues S Corporation Compensation and Medical Insurance Issues Treating Medical Insurance Premiums as Wages Heath and accident insurance premiums paid on behalf of the greater than two percent S corporation shareholder-employee are deductible and reportable by the S corporation as wa

From The Tax Advisor : The energy efficient commercial buildings deduction under Sec. 179D provides taxpayers with an incentive to make certain commercial building property more energy efficient. The Sec. 179D deduction has been in effect since Jan. 1, 2006, and was made permanent as part of the Consolidated Appropriations Act of 2021, P.L. 116-260, enacted in December 2020. A new and enhanced version of Sec. 179D was signed into law on Aug. 16, 2022, as part of the Inf

Congrats on your purchase. For tax purposes, a commercial building is depreciable over 39 years (straight line, no acceleration) for the building portion (purchase price plus acquisition expenses, less a value allocated to the land on which it sits). At least that’s true if you don’t do anything to change it. That’s quite a difference compared to the 27 ½ years for residential property. Fortunately, you didn’t buy just a building and its land – unless perhaps you bought a sh

Example: Business owner wants to sell or trade-in a former vehicle for $20,000 and purchase a new or used vehicle for $50,000. The issue we now face under that new tax law is that we have to take income on the business vehicle disposed of – no matter what – whether you convert it to personal use, or you trade it in, or sell it outright (that is, we no longer have a tax-free ‘exchange’ into a new vehicle). Therefore, you take the gain on the former vehicle when it is sold, or

REMINDER: 2020 Use Tax Per the State of California If you bought tax-free items online, in another state, or in a foreign country, you may owe use tax. Use tax applies to out-of-state purchases made by: Phone Internet Mail In-person And both of the following apply: The seller does not collect California sales or use tax. You use, give away, store, or consume the item in this state. For example, you would include purchases of equipment, supplies, and books. Examples of purchas

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California Capital FDC <info@cacapital.org> Deadline Extended! The application period to the California Relief Grant Program has been...