Dr. Friday Tax Tips

Dr. Friday reminds listeners that April 15 is the last day to file on time or submit an extension. She also notes final same-day timing for payments and IRA contributions.

Transcript

G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.

It is April the 15th. This is tax day.

Today is the last day that you can hit the send button to be on time. Today is the day you need to be making your payments. Maybe you need to be putting money into an IRA or a Roth. Today is the last day. You cannot contribute after this date.

If you need or haven’t filed an extension, I would suggest going to IRS.gov. You can file a free extension right on the website.

You need to make sure that’s done. The penalties for not filing on time are kind of ridiculous and not necessary.

If you go today, make an extension or file your taxes, then they’re on time and all we have to do is deal with the money.

You can catch the Dr. Friday Call-in Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.

Dr. Friday urges taxpayers to submit and confirm extensions before the deadline. She emphasizes checking bank draft timing, payment plans, and proof that the extension was accepted.

Transcript

G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.

Today you had better be making your extension or hitting the send button.

I know you have one more day, and you’re saying, wait, I don’t need to do it yet. But you do.

You need to make sure that it went through, that the payment’s gonna come out of the bank on time, and that you set up a payment plan if needed. These are all things you need to be able to set up and do.

If you haven’t filed your taxes or you haven’t gotten confirmation, you should check with your tax person. Did an extension get filed? Do you have proof? If you went to IRS.gov, you can confirm.

You can catch the Dr. Friday Call-in Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.

Dr. Friday introduces her role as an enrolled agent and explains how she helps with tax filings and representation. She encourages taxpayers who still need to file to request an extension and get a second review.

Transcript

G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.

I am Dr. Friday, an enrolled agent licensed by the Internal Revenue Service to do taxes and representation. That’s pretty much all I do for the last 31 years.

If you need someone to help you, at this point we’d only be doing an extension, but we could help you figure out your tax situation. We could review and help you understand if there are ways to save tax dollars.

You can make a tax appointment at drfriday.com or you can try calling the office, 615-367-0819.

Make it easy on yourself. Have the second look done so that way you know your taxes are done right, at 615-367-0819.

You can catch the Dr. Friday Call-in Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.

Dr. Friday explains why Airbnb and short-term rental owners need careful tax allocation and recordkeeping. She also notes compliance requirements at federal, state, and local levels.

Transcript

G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.

I probably should have had this one a lot earlier. Short-term rentals and Airbnbs are everywhere.

If you don’t run those right, and you’re taking a portion of your house and turning it into an Airbnb, you may find that the IRS is gonna be looking a lot closer at you.

Also, how are you handling all the utilities and things? Because if it’s not 24-7 an Airbnb or rental, are you using the proper percentages?

Are you depreciating things on the proper percentages? Are you making sure that you’re complying with not only federal but state and local regulations, with licensing and other additional taxes due for compliance?

If you need help, go to drfriday.com.

You can catch the Dr. Friday Call-in Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.

Dr. Friday explains that meeting the 750-hour test alone does not guarantee real estate professional status. She warns that taxpayers with full-time non-real-estate jobs often face IRS disallowance.

Transcript

G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.

Real estate professional status, wow, this is a big question.

I have a lot of people that swear they’re real estate professionals because they put in more than 750 hours. That is only part of it.

If you have a full-time job and you want to claim that you’re a real estate professional, you’re gonna find out it doesn’t work. The IRS will disallow it.

If you are a licensed real estate person and you’re doing it 24-7 like most of us do our business, sure, you’re a real estate professional. But sometimes there’s pros and sometimes there’s cons.

Do you really want to be paying self-employment tax on a rental property? You may have to if you’re treated as a real estate professional.

Need help? Go to drfriday.com.

You can catch the Dr. Friday Call-in Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.

Dr. Friday discusses opportunity zones as another way to defer capital gains. She notes timing rules and longer holding periods can be key to the tax outcome.

Transcript

G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.

Sometimes we’re just looking for good ways to save money, and one way to do that is opportunity zones.

They continue to have favorable tax treatment for investors who reinvest capital gains into what we call QOFs, or qualified opportunity funds, within required time windows.

A lot of times you have to do it for the long term, five to ten years. There are different rules, but instead of doing a 1031 exchange, you might want to look into an opportunity zone.

That may be another way for you to defer capital gains and potentially reduce taxes in the future. If you need help, go to drfriday.com.

You can catch the Dr. Friday Call-in Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.

Dr. Friday explains standard depreciation periods for residential and commercial rentals. She also covers cost segregation benefits and why recapture should be part of long-term planning.

Transcript

G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.

Rental properties continue to have depreciation rules: 27.5 years for residential and 39 years for commercial. Bonus depreciation may apply to improvements, although bonus rates decrease on schedule.

Landlords can still use cost segregation studies. That’s big, because if you’re buying something and you want to do cost segregation, you can pull out air conditioners and other equipment for faster depreciation.

But if you’re doing all that, you need to understand in the big picture you do have to do the other side, which is called recapture of depreciation.

So make sure you’re saving money today and not putting a big old hole in your pocket tomorrow.

You can catch the Dr. Friday Call-in Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.

Dr. Friday reviews the core 1031 like-kind exchange rule for real estate investors. She explains how reinvesting proceeds can defer capital gains instead of paying tax immediately.

Transcript

G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.

1031 exchange rules for real estate have no big change. It’s what’s called a like-kind exchange.

A like-kind exchange basically means we can defer, that’s a good word, right, defer capital gains and buy something else.

The simplistic side of this is, let’s say you sell something for a million dollars and you’ve got a ton of capital gains in that, right? Maybe you originally paid 200, so you’d have like 800 grand of capital gains that you have to pay tax on.

Guess what? You go buy something else, or up to three other properties, for that million dollars, and you don’t have to pay tax right now.

You exchange it for one big property, maybe some other types of property. This is something that can work to save tax dollars. You need help? Go to drfriday.com.

You can catch the Dr. Friday Call-in Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.

Dr. Friday discusses step-up in basis and why timing of transfers can affect taxes. She notes that gifting during life can sometimes leave tax savings on the table.

Transcript

G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.

A step-up in basis. Have you ever heard better words? A step-up in basis. I love it. It’s a lot of money in my pocket if I get a step-up in basis.

Now sometimes people think they’re really helping the family by doing quitclaims or giving the kids or the grandchildren something during their lifetime. Sometimes it is.

You need to plan it, though, because most of the time you’re leaving tax dollars on the table by giving something during your lifetime instead of waiting until you pass away.

Not saying it’s always one way or the other, but you need to consider both sides of this situation before you make that decision. If you need help, just go to the website at drfriday.com.

You can catch the Dr. Friday Call-in Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.

Dr. Friday explains that the adoption tax credit remains available with inflation adjustments. She highlights that unused credit can carry forward for up to five years.

Transcript

G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.

Adoption tax credit continues under the extended rules, with annual inflation adjustments increasing the maximum credit amount.

It’s a great thing. First, you’re adopting a child. That’s a wonderful thing. You’re helping people and doing important things, and you may also get the credit.

Maybe you can’t use it all in the first year. Well, this can roll forward up to five years, so it’s not like you’re gonna lose it if you don’t have all that expense in the first year.

So it’s a wonderful thing to do, A, to adopt a child, and B, to get a few more dollars in your pocket, because everyone knows that children are not inexpensive.

If you need help understanding how tax law works, or maybe you’re dealing with the IRS, just come to drfriday.com.

You can catch the Dr. Friday Call-in Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.