Are you going to run a business with multiple partners? Then know the tax consequences! Yes. There are several big benefits of forming a partnership. For example, your share of gains, deductions, losses, and credits can be passed through to your personal return. But...there are dangerous pitfalls too, which can hurt you badly. I’ll explain both sides of the coin, … [Read more...]
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Health Savings Accounts: The Ultimate Retirement Account
What’s the best way to save for retirement? The surprising answer is a Health Savings Account (HSA). The HSA is a tax-advantaged medical savings account, much like an IRA, that’s paired with a high-deductible health plan. Why is an HSA such a great way to save for retirement? Because an HSA is the only tax-advantaged account that gives you three important … [Read more...]
Don’t Get Caught in the Self-Rental Trap
To get my complete, FREE articlewith all the details… Let’s say you own a building. Next, let’s say that you rent your building to your business. This arrangement, not unreasonably, is called a “self-rental.” But be aware… If you haven’t done any tax planning, your self-rental may actually turn into a self-rental trap! What exactly is the self-rental … [Read more...]
IRAs Are Powerful Moneymakers for Kids
To get my complete, FREE articlewith all the details… The last things kids worry about today is how much money they’ll need in retirement. Which is a pity. And that’s why it makes good sense for you to sit them down and have “the talk” with them. No. Not about the birds and the bees. You have to explain to your children (who have W-2 income), how modest, regular … [Read more...]
Answers to Questions about Selling Your Home to Your S Corporation
To get my complete, FREE articlewith all the details… This powerful S corporation strategy makes sense when: You want to convert your home to a rental property and realize the tax benefits of the exclusions, orYou need more time to sell your home to realize the $250,000 exclusion ($500,000 if filing a joint return) This article answers two questions: We’re … [Read more...]