Great question about personal assistant deductions! I've been doing bookkeeping for several independent contractors in real estate, and there are a few additional deductions you might be missing. Since you mentioned driving to properties and running errands, make sure you're tracking ALL business miles - not just client meetings but trips to the post office, bank deposits, picking up supplies, etc. Many people only track the obvious trips. For your phone, if you have one line used for both business and personal, you can deduct the business percentage. But if you can get a separate business line, that's 100% deductible and often worth it for the clean record-keeping. One thing people often overlook: professional development expenses. Any courses, certifications, or training related to real estate or admin work are fully deductible. Same with professional memberships or subscriptions to industry publications. Also consider equipment depreciation if you bought a computer, printer, or other office equipment primarily for work. You can either deduct the full cost in the first year (Section 179) or depreciate it over several years. Keep tracking everything in a dedicated business account if possible - makes record-keeping so much cleaner come tax time!

One deduction that's often overlooked for personal assistants in real estate is professional liability insurance! If you're handling sensitive client information or have access to property details, many real estate agents require their assistants to carry E&O (Errors and Omissions) insurance. This is 100% deductible as a business expense. Also, since you mentioned working from cafes - while the coffee itself isn't deductible, if you're buying food/drinks while conducting actual business (like client calls or work meetings), those can qualify as business meals at 50% deduction. Just make sure to note the business purpose on your receipt. For your car expenses, don't forget that parking fees and tolls for business trips are fully deductible on top of your mileage. And if you're using your personal vehicle regularly for work, consider tracking actual expenses (gas, maintenance, insurance percentage) vs. standard mileage rate - sometimes actual expenses work out better, especially if you drive an older, less fuel-efficient vehicle. One last tip: if your broker requires you to maintain a professional appearance for showings, while regular business attire isn't deductible, any special cleaning/dry cleaning costs for clothes worn exclusively during business activities can sometimes qualify. Keep those receipts and notes about the business purpose!

Lol this GILTI stuff is making my head spin! I think I kinda get it now - basically it's to stop companies from using fake royalty payments to move profits to tax havens right? But I'm still not clear on HOW MUCH tax you actually pay on this GILTI income? Is it the full corporate rate or something less?

This is such a helpful thread! I'm dealing with a similar situation where our company has IP licensing arrangements with subsidiaries in Ireland and the Netherlands. One thing I'm still confused about - does the GILTI calculation look at each foreign subsidiary separately, or does it aggregate all your CFCs together? I'm trying to figure out if having one profitable subsidiary with minimal tangible assets and another subsidiary with lots of equipment but lower profits would offset each other in the GILTI calculation, or if each entity gets evaluated independently. This could make a big difference in our tax planning strategy. Also, are there any safe harbors or de minimis thresholds where small amounts of CFC income might not trigger GILTI at all?

22 Has anyone used the "safe harbor" method for determining FMV at conversion? My accountant mentioned something about using the tax assessment value but I'm not sure if that's reliable in my area since assessments are pretty out of sync with market values.

I went through this exact same situation two years ago when I converted my primary residence to a rental property. The key thing to understand is that you absolutely can deduct rental property losses, but only the portion that occurred after conversion. Here's what you need to do: Get a solid valuation of your property as of June 2023 when you converted it to rental use. This becomes your new basis for the rental property. Any decline in value that happened while you lived there is considered a personal loss and isn't deductible. Make sure you've been taking depreciation deductions during the rental period too - if you haven't, you'll still need to account for "allowed or allowable" depreciation when you calculate your final loss. Also keep detailed records of any improvements you made during the rental period, as these can be added to your basis. The IRS is pretty strict about the conversion rules, so documentation is key. If you're unsure about the fair market value at conversion, consider getting a retroactive appraisal or use comparable sales data from that time period.

Just as a heads up - my friend who runs an interior design business from home got audited last year and one of the things they specifically looked at was her home office client meal deductions. She got through it fine because she had detailed records - not just receipts but calendar entries showing client names, topics discussed, and outcomes of meetings. IRS apparently gets suspicious of home office food/drink deductions so documenting the business purpose thoroughly is key!

This is all really helpful information! I've been wondering about this exact situation myself. One thing I'd add - make sure you're consistent with how you handle these deductions from year to year. If you start claiming home office client meal deductions, keep doing it the same way each tax season. Also, consider setting up a simple client meeting log where you record the date, client name, business purpose, and what refreshments were provided. This creates a paper trail that shows the business nature of these expenses. I use a basic spreadsheet that takes maybe 30 seconds to update after each client meeting, but it would be invaluable if I ever got audited. The key seems to be showing clear business purpose and keeping personal expenses completely separate. Thanks everyone for sharing your experiences - this gives me confidence to start properly tracking and deducting these legitimate business expenses!

Great question about the tax strategy! The general rule of thumb is: 1) Get any employer match first (that's free money), 2) Max out Roth contributions if you expect higher tax rates in retirement, 3) Then max pre-tax contributions like SIMPLE IRA if you expect lower tax rates in retirement. But here's the key thing people miss - the backdoor Roth IRA contribution limit ($6,500 for 2023) is completely separate from the SIMPLE IRA limit ($15,500 for 2023, or $19,000 if 50+). You can absolutely do both in the same year without any issues. Since you're already above the income limits for direct Roth IRA contributions (hence needing the backdoor method), you're likely in a higher tax bracket now. The SIMPLE IRA gives you immediate tax savings, while the backdoor Roth gives you tax-free growth. If you can afford both, it's usually worth doing both for the diversification of having some pre-tax and some post-tax retirement savings.

Great question about SIMPLE IRA employer matches! Yes, but it works a bit differently than traditional 401k matches. With SIMPLE IRAs, employers typically do one of two things: 1) **Matching contribution**: Dollar-for-dollar match up to 3% of your salary (most common). So if you make $100k and contribute 3% ($3k), your employer contributes another $3k. 2) **Non-elective contribution**: The employer contributes 2% of your salary for ALL eligible employees, regardless of whether you contribute anything. This is less common but some employers prefer it for simplicity. The key difference from 401ks is that SIMPLE IRA matches are immediately 100% vested - no waiting period like you sometimes see with 401k plans. Also, the employer contributions count toward the overall SIMPLE IRA limits, not as separate "employer match" space like with 401ks. So if your wife's company does the 3% match, definitely contribute at least 3% to get that free money before worrying about maxing out other retirement accounts. That employer match is an immediate 100% return on investment that you can't get anywhere else!