A stealth bomber is deadly because, thanks to its radar-defeating design, the enemy can’t see it coming. That’s why the Alternative Minimum Tax (AMT) is often called a “stealth tax.” It’s a tax that you often don’t see coming until it’s too late! Why is the AMT so dangerous? Why can it cause you such trouble when you want to change the way you do business or practice … [Read more...]
Is your real estate activity a “business” or are you an “investor”?
How do you structure your real estate activities? Are you running a business or simply investing in properties? The answer can have big tax consequences! EXAMPLE: If you want to take a trip to a real estate seminar you may be able to deduct all the related expenses… or maybe not. It all depends on how you’ve structured your activities. Which is why you need more … [Read more...]
Give the IRS an inadequate mileage log and it will crush you
Don’t let what happened to Jim and Martha Flake happen to you. Because of bad recordkeeping, they attracted the attention of the IRS. The result? They had to visit with an IRS agent every two weeks for about a year! How can you stay on Uncle Sam’s good side and avoid the two mistakes that got the Flakes in hot water? Easy. Read my new article titled Tax Tips: IRS Asserts … [Read more...]
How to deduct your golf expenses. (It’s easier than you think!)
Do you hook or slice on the golf course? Don’t worry. No matter how well or poorly you play the game, when it comes to deducting your golf expenses, you can always sink a hole in one! That’s right. Uncle Sam will let you write off your golf expenses if you follow a few simple rules. And these same rules also let you deduct expenses for fishing, scuba diving, hunting, … [Read more...]
The truth about “defined-contribution health plans”
After the Affordable Care Act (Obamacare) became law, a bunch of ads have popped up on the web touting “defined-contribution health plans.” They’re billed as perfect for business owners who have fewer than fifty employees. The trouble is, the tax code makes no mention of defined-contribution health plans! FACT: These plans are purely the creation of marketers and can get you … [Read more...]