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...]
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Avoid a fatal mistake with independent contractors
If you’re using independent contractors who are paid on a 1099, be careful. Be very careful. You see, if you don’t handle things exactly right, the IRS may decide that your independent contractors are actually W-2 employees. Which can open a large can of worms. If you want to play it safe and make sure that your independent contractors stay independent, don’t miss my new … [Read more...]
What rental property managers must report
A rental property manager’s work is never done. And one thing he or she must never forget to do is report gross-rental-income to property owners on a 1099-MISC. This reporting responsibility can be confusing because new laws were enacted in 2010 and then repealed in 2011. Want to end the confusion and find out what property managers really need to report — and what property … [Read more...]
Create tax-free income for your parents and you
You probably know that you can deduct business lodging travel costs. What you might not know is that you can turn that deduction into tax-free income for your mom and dad. (Or for other relatives or friends for that matter.) How? By paying them rent for your business stays. And that’s not all. You can deduct the business part of the “rent” you pay. Nice, huh? If you’re … [Read more...]
How to protect your S corporation
Running your business as an S corporation can offer a lot of valuable benefits. But be careful! If you don’t follow the law closely, you could lose big deductions and have to pay additional taxes, penalties, and interest. How can you help make sure that you comply with the law and avoid legal problems? Easy. Read my new article titled Tax Tips: Tax Law Prohibits the … [Read more...]