You buy a building. You fix it up. You sell it for a tidy profit. Congratulations… but that’s not the end of the story. You see, the IRS will want to know if your building is a dealer property or an investment property. This distinction is not always easy to make… either for you or your tax preparer. What’s more it’s an important distinction that can have huge … [Read more...]
How to survive an IRS rental properties audit
I recently heard from a reader of the Tax Reduction Letter asking for advice. It seems that an IRS auditor had examined the couple’s three rental properties, disallowed their losses, and told them to expect a tax bill for $55,000! My reader asked if there was anything he and his wife could do to successfully challenge the IRS ruling and avoid paying the $55,000. It turned … [Read more...]
The most dangerous place to borrow money
If you ever run short of money there are two places you should never, ever go for a loan. Your friendly neighborhood loan shark. Miss a usurious payment and you could get your legs broken. Ouch! The payroll-tax money you’ve withheld from your employees. Borrow just a little and Uncle Sam will break your legs. Maybe not literally, but you will suffer tremendous … [Read more...]
Crucial steps to deducting conventions, seminars, and meetings
Want to deduct the cost of a trip to a convention, seminar, or similar meeting at a beautiful resort? Especially one held in an exotic location? Then there’s an important fact you should know. The tax law divides the world into two zones: Inside North America Outside North America Why does this distinction matter? Because it affects the way you can deduct related … [Read more...]
Little known but easy ways to increase vehicle tax deductions
Do you own more than one vehicle? And do you use just one vehicle for business? Then I’ve got good news for you… If you play your cards right, you may be able to claim some hefty tax deductions using assets you already own! Whether you operate your business as a proprietorship or as a corporation, don’t miss the money-saving information we’ve got waiting for you. I … [Read more...]