Qualifying for a home-office deduction can actually be quite easy. All you have to do is: Use the office exclusively for your business Completely avoid personal use of the office But what happens if you want to run a second business from your home office, or share the office with your spouse? That’s where things get complicated! If you want to avoid losing … [Read more...]
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Are Your Rental Properties a “business” or investment” for tax purposes? Big difference.
If you own rental properties, you don’t want the IRS to classify them as an “investment.” Nope. You want those properties to qualify as a “trade” or “business.” Why? Because if your properties are treated as such, and reported on Schedule E, you can enjoy from some major tax breaks. You’ll get the whole story when you read my article titled Tax Tips: Are Your Rental … [Read more...]
How to maximize vehicle-mileage deductions (Part 1)
Whether you’re running a corporation, proprietorship, or partnership, you want to claim the maximum mileage deductions possible. But be careful. You see, it’s extremely important to deduct only legitimate miles. If the IRS finds mileage-deduction violations, you’ll look like a tax cheat and potentially open the door to a detailed audit. No fun. So how do you deduct all … [Read more...]
How a little knowledge can save you in an audit
Most tax advisors serve their clients well. But that doesn’t mean that you should be ignorant of the tax law and passively accept all your tax professional’s advice uncritically. Hey. It’s your money and you need to be aware of what’s going on… especially if you’re called into an IRS audit. That’s what Mrs. and Mr. Smith found out the hard way. Read the full article. You … [Read more...]
How to deduct a “principal” home office
Are you afraid to claim a home-office deduction because you also commute to an office outside your home? Well, you may be passing up a big tax break you absolutely are entitled to. You see, if you know how to play the game, you can qualify for the home-office deduction which turns your commuting mileage into deductible business mileage. You’ll learn how to come out a … [Read more...]