With the continued growth of short-term rental platforms such as VRBO and Airbnb, many taxpayers are asking whether these activities qualify for special tax treatment. In certain situations, short-term rentals can provide a significant tax advantage by allowing losses to be treated as non-passive, making them deductible against other sources of income. Because most rental […]
Blog
Why Year-Round Tax Planning Matters
Many private lenders and business owners are focused on day-to-day operations and typically only address taxes when it’s time to file their return. Unfortunately, waiting until year-end can mean missing valuable opportunities to reduce tax liabilities and maximize available tax benefits. Tax planning should happen throughout the year, not just during tax season. Regular reviews […]
California DRE Reporting Requirements
Many real estate brokers and private lenders unintentionally trigger DRE reporting requirements simply through normal lending activity. Sections 10232 and 10238 of the Business & Professions Code outline specific thresholds that, once met, require formal notification and ongoing reporting to the DRE. Section 10232 – Trust Fund & Loan Activity Thresholds You may be subject […]
Tax and GAAP Treatment for Loan Origination Fees
As a CPA firm specializing in the private lending space, we often advise our clients on the proper treatment of loan origination fees. These fees, typically charged by lenders to process and underwrite a loan, carry important implications for both financial reporting (GAAP) and income tax reporting (IRS). Below are the key differences between GAAP […]
Bonus Depreciation
Bonus depreciation lets businesses deduct the full cost of qualifying assets immediately in the year they are placed in service, instead of spreading deductions over several years. This can reduce taxable income faster and improve cash flow beneficial for managing capital investments. What You Need to Know About Bonus Depreciation in the One Big Beautiful […]
Opportunity Zones Are Making a Comeback
Exciting news for investors and business owners: Qualified Opportunity Zones (QOZs) are back in action, thanks to a new piece of legislation called the One Big Beautiful Bill Act (OBBBA). This law permanently reauthorizes the QOZ program, with some important changes that could offer tax-saving opportunities for years to come. If you’ve invested in […]