The Tax Cuts and Jobs Act created a new tax-planning strategy called “Qualified Opportunity Funds.” It was designed to provide a new qualified-opportunity-fund tax-deferral strategy that can also eliminate some capital gains and make others tax-free. Our take on qualified opportunity funds? We believe they do provide an ability to defer (and possibly eliminate) some … [Read more...]
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Deductions for defunct S corporation expenses
Let’s say you closed your S corporation in 2016. Let’s also assume that you incurred unexpected expenses from your defunct S corporation in 2017 and 2018. Finally, let’s stipulate that you personally paid for them as the S corporation’s president and sole shareholder. Now comes the big question… Can you deduct those expenses? Now comes the big answer… Nope. You’re out … [Read more...]
Tax reform and the cannabis industry
Thinking about getting into the cannabis business? Then our new article makes must reading. Why? Because we’ll explain how the Tax Cuts and Jobs Act impacts an important decision you’ll have to make… which form of business entity to choose. Want your new business to get off on the right foot and keep Uncle Sam happy? Read my new article titled Q&A: Tax Reform and … [Read more...]
How to find your Section 199A deduction with multiple businesses
Calculating your Section 199A deduction for a single business can be complicated and confusing. If you have multiple businesses, things get even trickier. There are more decisions to make. More choices to consider. More complications to deal with. That’s where our new issue of the Tax Reduction Letter comes in. We’ll show you step-by-step how to calculate your correct … [Read more...]
Does the spouse partnership really work?
As we explained in a past issue of the Tax Reduction Letter, a spousal partnership can save you a lot of money on taxes. More money, in fact, than a sole partnership or S corporation can. But some of our readers have asked us if an IRS attribution rule (that applies to spouses who conduct passive activities) kills the spousal partnership strategy. Our answer is an emphatic … [Read more...]