It’s outrageous! Did you know that the Alternative Minimum Tax (AMT) rules force you to pay taxes on your tax deductions! That’s right. The AMT even makes you pay taxes on the personal exemptions the regular tax law grants you for your children! Luckily, because you own a business, there is something you can do to protect yourself. You can use your business expenses to … [Read more...]
Corporations
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How to use corporate advances to avoid double taxation
Do you own a C corporation? If you do, you have a nasty double-taxation problem. EXAMPLE: Let’s say your corporation has $10,000 of profits after paying your salary and other expenses. If you want to use that money for personal purposes, you have to: Pay the corporate tax on the income And pay a dividend tax on the transfer from the corporation to your personal bank … [Read more...]
How to liquidate your S corporation the right way
It’s a fact… If you liquidate your S corporation the right way, you can use any losses as tax deductions on your personal tax return — and keep the assets personally! But you have to know how to play the game. You see, lawmakers and the IRS have made things tricky. (No surprise!) Which is why it’s so important to make sure that both corporate and personal gains and losses are … [Read more...]
S corporations! Save money using income shifting
What’s the perfect gift for family and friends? Stock in your S corporation! That’s right. If you handle things correctly you can save over $6,000 in taxes (versus giving the same dollar-amount in cash.) Until recently, this income-splitting strategy only worked when you gave stock to adults. But because of provisions of the new Obamacare tax law, you now get a benefit … [Read more...]
The right way to reimburse S corporation travel
Do you operate your business as an S corporation or a C corporation? If the answer is “yes,” you need to remember that your corporation is a separate legal entity. Why is this so important? Because if you incur travel expenses on behalf of the corporation, you have to be careful about how those expenses are reimbursed. If you don’t, you could find yourself in hot water with … [Read more...]