In past issues of the Tax Reduction Letter, I’ve explained how you can rent your personal residence to your S or C corporation for fourteen days or less. Why would you want to do that? Because, as I’ve said, if you handle the transaction properly, you can get a tremendous double tax benefit… Your S corporation deducts the rent it paid you and then flows that lovely … [Read more...]
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Tax planning & noncompete agreements
When you buy a business, you don’t want the seller to turn around, create a similar new business, and start competing with you. Okay. That’s obvious, and you already know you’ll need a noncompete agreement. What you may not know is that noncompete agreements have very real tax consequences. Want to learn how the IRS treats your tax deductions as the buyer of a business … [Read more...]
Create a tax-free deduction for your smart phone
Here’s good news (for a change!) from the IRS… If you and/or your employees use smart phones, you can create some nice no-hassle, tax-free fringe benefits. Want to find out how you can take advantage of Uncle Sam’s largesse? Then put down your iPhone or Android phone and read my new article titled Tax Tips: Create Tax-Free Fringe Benefit Deductions for Your … [Read more...]
Don’t choose the wrong mileage deduction!
There are two ways to deduct the business use of your car, truck, or SUV. If you qualify, you can use IRS mileage rates or You can use the “actual expense” method Which one is right for you? You’ll get the right answer when you use the free calculator tool we’ve included in our new article titled Tax Tips: Are You Cheating Yourself by Using IRS Mileage … [Read more...]
Concerned about renting your house to your corporation?
I always enjoy hearing from subscribers to my Tax Reduction Letter. I particularly appreciate it when readers challenge the advice I provide. Why? Because I’m always prepared to back up my money-saving strategies with IRS tax-code citations, tax-court decisions, and more. My readers deserve to get advice they can rely on and that’s exactly what I provide month in, month … [Read more...]