Making loans to your corporation became a lot more hazardous back in 1986 thanks to the Tax Reform Act passed that year. But you ain’t seen nothin’ yet… The new Tax Cuts and Jobs Act makes things far worse for tax-years 2018 through 2025! We’ll tell you exactly what lawmakers did when you read my new article titled Tax Tips: TCJA Tax Reform Creates Big Hazard in Loans to … [Read more...]
AMT
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Good news. Tax reform lands a blow to AMT
Who’s afraid of the big, bad AMT (Alternative Minimum Tax)? Before recent tax reform took effect, you’d be afraid if your AMT liability was higher than your regular federal tax liability. (You’d have to pay the difference in additional taxes.) Now that tax reform is the law, you’ve got much less to fear from the onerous AMT. The bottom line? Changes in the law mean … [Read more...]
Be Alert to Tax Rules That Destroy Mortgage Interest Deductions
If you don’t know how to play the IRS’s game, your mortgage deduction could be at risk. However, if you know your tax law (and we do!), you can mitigate and often eliminate the loss of your deductions. Want to keep the IRS at bay and save a bundle? Read my new article titled Tax Tips: Be Alert to Tax Rules That Destroy Mortgage Interest Deductions. Three ways our … [Read more...]
How coin, stamp, and baseball card collectors can keep the IRS happy
Are you a collector of coins, stamps, baseball cards, or other items? If the answer is “yes,” you should also start collecting some important tax information. For starters, you should know that your collecting activities will fall into one of four IRS-determined tax categories: Hobby Investment Trader Dealer Depending on how the IRS categorizes your collecting … [Read more...]
How independent contractors mistakenly paid as employees cut their tax bills
Are you paid commissions and taxed as an employee? If so, you could be a business owner under the common law classification system. “So what?” you might say. Well, we’ll tell you what, and it’s a lot! You are likely losing tens of thousands of dollars in business expense deductions each year. You may even think you are getting those deductions, without realizing that they … [Read more...]