What is IRA Section 4975 (Self-Directed IRAs)? Report: Understanding Section 4975 and Its Impact on Self-Directed IRAs Date: October 26, 2023 Prepared For: General Audience Subject: The Prohibited Transaction Rules of IRC Section 4975 1.0 Executive Summary Section 4975 of the Internal Revenue Code establishes a strict regulatory framework to prevent self-dealing and protect the assets of qualified […]
IRS Section 121: The Home Sale Exclusion Section 121 of the Internal Revenue Code allows homeowners to exclude a significant portion of the capital gain from the sale of their primary residence from their taxable income. This is one of the most powerful tax benefits available to individuals. Core Rule for Single Filers & Married Couples […]
Yes, you can deduct private mortgage insurance (PMI) premiums for a rental property. The information in the provided prompt, which states that you cannot claim a deduction for private mortgage insurance, is incorrect and refers to an outdated IRS FAQ that mistakenly applied the personal residence deduction expiration rules to rental properties. PMI for a rental property […]
Tax Court Rulings on Real Estate Professional Status, Passive Activity Losses, Deductions, and Hobby Losses Table of Contents Real Estate Professional Status & Passive Activity Losses Deduction Substantiation: “Ordinary and Necessary” Expenses Hobby Losses: Activity Not-for-Profit Depreciation and Basis Issues Conclusion & Actionable Insights 1. Real Estate Professional Status & Passive Activity Losses IRS.gov Reference: Passive Activity […]