Posts by Thomas Castelli, CPA

With the popularity of short-term rental investments, it’s not uncommon for investors to use them as vacation homes while at the same time collecting the tax benefits from the property. This generally works out because you can stay at the property for the greater of 14-days or 10% of the total days you rent it…

If you’re a California resident, it’s probably no secret that California is a bit unique when it comes to state tax issues.  Most states conform the federal tax code pretty closely, with relatively few deviations. However, California tends to deviate significantly from the federal tax code and it’s usually not in favor of the taxpayer.…

If you’re looking to qualify as a real estate professional and use the losses from your long-term rental properties to offset your W-2 or active business income, you’ll need to materially participate in your rental activities.  The problem is meeting one of the seven material participation tests for each individual property is often not feasible,…

Are you trying to use losses from your short-term rental (STR) property to reduce taxes on your W-2 of active business income?… If so, this article may just save you tens of thousands of dollars… As you may know, in order for losses from a STR to offset your active income, the STR needs to…

If you caught Part I two weeks ago, we discussed the tax benefits and general formalities of hiring your child through your business. One of the things we learned is that the key to avoiding FICA taxes (i.e. social security and medicare) on their income is by hiring them through a sole proprietorship or through…

In last week’s article, we covered the basics of hiring your children in your business. Now the question becomes, what to do with their earnings? Of course, they can spend their earnings on Roblox, Fortnite, clothes, and whatever else kids spend money on these days. But what about using their earnings to save for their…

While there are many tax-smart ways to transfer money to your children, we often get questions from landlords and business owners on the tax benefits of paying their children through their business. That’s why this week, we’ll discuss the ins and outs of paying your children through your business including the tax benefits and common…

Who doesn’t want an excuse to buy another vehicle? There is nothing like telling your spouse that it’s necessary to buy that Porsche Cayenne you’ve been eyeing in order to reduce your tax bills. That’s why in this Tax Smart Investor Newsletter we’re going to break down vehicle-related deductions and how you might be able…

Every once in a while we get a question about whether or not landlords qualify for the home office deduction? Also, can landlords actually benefit from establishing one? In today’s Tax Smart Newsletter we’ll address both of these concerns because as you’ll see, home offices can open the door to some lucrative tax deductions if…

Have you or a family member ever had an illness or health-related issue that wasn’t 100% covered by your health insurance plan, causing you to have to come out of pocket to cover part of the bill? I’m sure many of us have…And if you haven’t yet, I can almost guarantee that if you live…