Do you live and work abroad? If you do, you’ll want to know if your business-income qualifies for the new 20-percent Section 199A tax deduction. Sadly, we don’t have great news for you. However, if you play your cards right, and review the strategies explained in this article, it’s very possible that you won’t owe much tax to Uncle Sam. What issues will you have to … [Read more...]
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Make the RMD From your Traditional IRA, Tax-Free
Make the RMD from Your Traditional IRA, Tax-Free You probably know that once you turn 70 ½, the tax code requires you to withdraw a tax-code-defined “required minimum distribution” (RMD) from your traditional IRA. The taxable RMD adds to your “adjusted gross income” (AGI) and can increase the taxes on your Social Security benefits. What you may not know is that you can … [Read more...]
Why a Single-member LLC Is a Smart Way to Own Real Estate
In this issue of the Tax Reduction Letter, we’ll tell you about a totally legal strategy that can provide you with two extremely valuable benefits… A huge reduction in tax complexityCorporate-style liability protection How do you put this proven strategy to work? Easy… Use a single-member LLC for your real estate ownership. When you do, you’ll come out a big winner in … [Read more...]
Received a fraudulent 1099? Get even!
This is a true story, straight from the IRS. (And if you ever receive a fraudulent 1099, this new article will help you.) The facts of the story… An auto dealer sold a car to a customer. The next day the buyer got a call from the dealer asking him to return to the dealership and change the agreed “no-interest” loan to an interest-bearing loan. The customer obviously said … [Read more...]
Know These Tax Rules If Your Average Rental Is Seven Days or Less
Do you own a condominium, cottage, cabin, lake or beach home, ski lodge, or similar property? Do you rent it out for an “average” rental period of seven days or less? If you do, be aware. You have now landed in the “vacation hotel” area of the tax code … which can make things tricky. Of course, the job of the Tax Reduction Letter is to make things un-tricky which is … [Read more...]