In past issues of the Tax Reduction Letter, I’ve explained how you can rent your personal residence to your S or C corporation for fourteen days or less. Why would you want to do that? Because, as I’ve said, if you handle the transaction properly, you can get a tremendous double tax benefit… Your S corporation deducts the rent it paid you and then flows that lovely … [Read more...]
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How tax-preparer penalties can increase your taxes
As a savvy taxpayer, you know that Uncle Sam has his eyes on you. What you may not know is that Uncle Sam is also watching your tax preparer. And closely. That’s right. The tax law makes tax preparers part of the IRS tax compliance workforce and expects them to do their job correctly and help enforce the tax laws. If they don’t, they face a wide range of costly penalties … [Read more...]
How to qualify for a little-known legal-fees deduction
If you’ve won a lawsuit award or settlement, Uncle Sam will want his share of the money. But if you know how to take advantage of a little-known deduction, you can save thousands of dollars in taxes. Want to keep more of your award or settlement in your pocket? We’ll show you how when you read my new article titled Tax Tips: Minimize Your Tax Bill on Lawsuit Awards and … [Read more...]
There’s hidden cash in the IRS standard mileage rate!
It’s sad but true… 83% of businesspeople think that use of the IRS standard mileage rates takes care of vehicle expenses for business purposes. Wrong! The truth is they’re costing themselves big bucks by failing to deduct a loss on the sale of their business vehicle. Want to find out the right way to play the IRS’s mileage game? Read my new article titled Tax … [Read more...]
Get your injury award or settlement tax free
I sure hope you’re never injured, but if you are ever laid low, here’s some news that may cheer you up… Uncle Sam provides a generous tax exclusion for awards and settlements arising from injury lawsuits. That’s right. You can use the exclusion, along with other tax-reduction strategies, to minimize any tax you have to pay on the amount you receive. Getting injured is no … [Read more...]