A little while ago I was asked an interesting (if arcane) question by a long-time reader of the Tax Reduction Letter. The gentleman who wrote me recently installed a built-in desk in his home office. He also had a built-in desk installed in a personal (non-business) part of his home. His question? How should he treat the two built-in desks for tax purposes? You’ll hear … [Read more...]
Depreciation
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Selling an old asset? Take my tax IQ test!
Let’s say it’s time to get rid of your old business vehicle and buy another one. Does it make sense tax-wise to sell it or trade it in? The answer is… it all depends. If you’re going to take a loss, check out last month's article. If you’re going to realize a gain, my new article is for you. You see, it will show you how to maximize your tax benefits and keep money … [Read more...]
How to turn a loss into a big tax benefit
So you’ve decided to get rid of your old business vehicle and buy or lease a new one. What’s the first thing you need to do before you ditch the old car? Do a calculation and see if you’ve realized a gain or a loss. If it turns out you’re going to have a loss, don’t lose heart. You see, if you know how to play your cards right, you can still be a winner thanks to Uncle … [Read more...]
Death, taxes, and the Section 179 deduction
When you’re dead, the status of the Section 179 deduction you took on your business vehicle won’t be troubling you much. But you’re alive and kicking! Which means you’re able to read my new article that explains what happens to your Section 179 tax deduction if you die, retire, or become disabled. Okay. I admit that this is not the most cheerful subject in the world, but if … [Read more...]
Why tenant improvements can mean a bonanza for landlords
Have your tenants made improvements to your rental property? If the answer is “yes,” you may be in line for some hefty monetary and tax benefits! You see, under Section 109 of the Internal Revenue Code, at the termination of a lease, the landlord gets the value of tenant (lessee) improvements completely free of taxes. Want to learn how to be a winner at this profitable game? … [Read more...]