What’s the perfect gift for family and friends? Stock in your S corporation! That’s right. If you handle things correctly you can save over $6,000 in taxes (versus giving the same dollar-amount in cash.) Until recently, this income-splitting strategy only worked when you gave stock to adults. But because of provisions of the new Obamacare tax law, you now get a benefit … [Read more...]
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How to turn a loss into a big tax benefit
So you’ve decided to get rid of your old business vehicle and buy or lease a new one. What’s the first thing you need to do before you ditch the old car? Do a calculation and see if you’ve realized a gain or a loss. If it turns out you’re going to have a loss, don’t lose heart. You see, if you know how to play your cards right, you can still be a winner thanks to Uncle … [Read more...]
Four year-end tax strategies for you and the kids
Marriage and divorce are deeply personal matters that involve strong emotions. But the IRS doesn’t care a bit about your feelings. Uncle Sam just wants to get his money. That’s why, if you’re thinking about getting married or divorced, you need to answer this rather unfeeling tax question: “Should I get married or divorced before December 31?” The answer can have huge tax … [Read more...]
Reward employees with deductible fringe benefits
Do you own a small business? Than you can take advantage of tax deductions for de minimis (i.e. small) fringe benefits. The beauty of the de minimis classification is that your business gets the tax deduction and your employee gets the benefits tax free. A “win/win” situation thanks to the IRS! You’ll get the full story in my new article titled Tax Tips: Employer Uses De … [Read more...]
Tax Tips for the estates of those who died in 2010
IMPORTANT: The tax law gives two choices to the executors of estates of decedents who died in 2010: Choice #1 is to apply the old 2010 rules Choice #2 is to apply the newly enacted 2011 and 2012 estate tax rules If you are the executor of an estate (of someone who died in 2010), which choice makes sense for you? You’ll find answers in our new article titled Tax Tips: Tax … [Read more...]