To paraphrase Bob Dylan, “the tax laws they are a changin.” This means that if you’re running your business as an S corporation you need to understand the current law and make plans accordingly. For example, consider this… High individual-rates and low corporate-rates might make a switch to a C corporation a very smart decision. Why should you consider making the change? … [Read more...]
Watch out for the S corporation tax on “built-in-gains”
Do you operate your business as a C corporation? Would you like to turn it into an S corporation? If the answer is “yes,” be very careful! You see the IRS’s “built-in-gains” tax keeps a C corporation from wriggling out of double taxation by switching to an S corporation and then instantly selling or liquidating all its assets. If you want to stay in Uncle Sam’s good … [Read more...]
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 an IRS mistake can cost you big money
It should come as no shock that the IRS isn’t perfect. So what happens when they screw up and their error costs you money? In my new article I’ll tell you how the IRS made just such an error in their publications and instructions — an error that concerns the gross-income limit that applies when you want to claim the home-office deduction and have more than one place of … [Read more...]
Disability policies and the self-employment tax
Here are three extremely important questions that every business owner should know the answers to… Do you have disability insurance? Is your disability protection a traditional disability income policy or a disability “overhead expense” policy? If you become disabled, do you have to pay self-employment taxes on the benefits you receive? You’ll find detailed answers … [Read more...]