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Claim Home Office, Workshop, Garage Deduction

If requirements are met, this is one of the best deductions as it enables conversion of non-deductible personal expense into a tax-deductible rental business expense.

Besides deducting expenses for use of space at home for office work, you can deduct space used as work- shop for rental business.

If you use your garage to store your tractor to cut grass or to hold furnishings, you can deduct expense for its use.

Pay it Forward

The first half of the year is in the books. It’s time to take a look at your withholding and estimated tax payments.

Why is this important?

To avoid any potential penalty for underpayment of estimated taxes.

How do you calculate this?

Taxpayers with adjusted gross income (”AGI”) under $150,000 needed to have paid in 100% of the prior year tax. For example, if someone’s AGI was under $150,000 and their tax was $20,000, they would need to have paid in $5,000 per quarter or have this withheld.

The Required Minimum Distribution (”RMD”) is back. Taxpayers over age 70½ with IRA’s or qualified retirement plan assets will have to take their RMD again this year. Last year there was no requirement to do this. This will increase taxpayer’s taxable income.