A 1031 exchange allow an investor to defer the payment of federal income taxes typically incurred by selling an investment property, as the profit from the property sale is used to purchase a ‘like-kind’ property. Requirements Like-Kind Property The relinquished property (property being sold) and the replacement property (property being purchased) must be like-kind, meaning they must be similar in nature and character. For example, relinquishing a rental property for a new r

The following is a recommended list of items for setting up your new business. Choose a business structure and register the business Businesses are registered with state governments. The most common business structures are: Sole Proprietorship - an unincorporated business owned by an individual. There is no distinction between the taxpayer and their business. This business entity does not require a separate tax return, a Schedule C, Profit or Loss from Business, is filed wit

Possible deductions include: HEALTH INSURANCE - conditional, based on whether a self-employed individual is qualified to join their spouse’s medical plan. If you do qualify, you can deduct medical and dental premiums for spouses, dependents and children below the age of 27. This deduction is an income adjustment, not an itemized deduction, so it is not necessary to itemize it to claim it TRANSPORTATION - can include mileage costs for business-related travel using your own car