When it comes to the home-office deduction, sole proprietors have it easy. All they have to do is deduct home-office expenses on Schedule C. But what about folks who operate their businesses as S corporations? Can they also take advantage of the home-office deduction? The answer is a resounding “yes!” but you have to know how to play the game. We’ll explain how to come … [Read more...]
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Read this before you buy a business!
What’s the smart way to acquire a business? The answer is simple… Buy the target company’s stock and treat the deal as an asset purchase! When you do, both you and the seller benefit tax-wise. But be aware of this important fact… When you’re buying a business, you really have to know what you’re doing. Which is why I suggest that before you do anything, you take a close … [Read more...]
Create an employee-spouse “105-HRA”
It’s a fact… The Affordable Care Act (Obamacare) doesn’t apply to a business that has only one employee. That’s good news. Your spouse can benefit from what I call a “105-HRA” (Health Reimbursement Arrangement). When you design it for your spouse, the plan reimburses him/her for family medical expenses. The reimbursements are business-expense deductible on your tax … [Read more...]
S corporation owners: Don’t pay yourself on a 1099!
Attention S corporation owners! Do you pay yourself with a 1099-MISC? OR Do you pay yourself on both a W-2 and a 1099? If you’re answering “yes,” stop right now and read my new article! You see, you could be in big trouble and face severe IRS problems. Oh, I know. Paying yourself on a 1099 or on a W-2 and 1099 makes your life easier. No payroll taxes. No withholding … [Read more...]
How to create business partnerships tax free!
Here’s some good news from Uncle Sam… If you want to create a partnership for a new or existing business, you can probably do so tax free! Want to learn how you or your business can qualify for tax-free partnership formation? Want to avoid situations that might force you to pay taxes during partnership formation? Easy. Read my new article titled Tax Tips: Create a … [Read more...]