A little while ago I was asked an interesting (if arcane) question by a long-time reader of the Tax Reduction Letter. The gentleman who wrote me recently installed a built-in desk in his home office. He also had a built-in desk installed in a personal (non-business) part of his home. His question? How should he treat the two built-in desks for tax purposes? You’ll hear … [Read more...]
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Don’t miss taking vacation-home “repair days”
A vacation home should be a place where you can relax carefree. But before you hit the hammock, you should know a little tax law… The tax treatment of your vacation home depends on two things: The number of days you rent it out at fair market value The number of personal-use days One way to get a nice tax break is to take advantage of “repair days.” You see, repair … [Read more...]
How the IRS turns “Home Sweet Home” sour
“Home Sweet Home” is not a simple concept for the IRS. Nope. They delight in creating complications. Which is why they make the troublesome distinction between your “personal home” and your “tax home.” Depending on how you operate your business and where it’s located, you risk losing your valuable business vehicle deductions! Want to avoid crashing your business-vehicle … [Read more...]
Six Q&As about renting your home to your corporation, tax free!
We’ve written articles before that explained how you can rent your personal residence to your S corporation (or C corporation). Rent it out for 14 days or less and you could get some really nice tax benefits. For starters: Your S corporation will get a tax deduction that flows through to you on the K-1, and… You receive tax-free income from the rental Does this sound … [Read more...]
Why renting your home to your corporation works
Last month we published an article that got a lot of great feedback. In it, we explained… How a 14-day (or less) rental of your home to your S or C corporation can create tax-free income for you and deductions for your corporation. Some of our readers doubted that this strategy could pass IRS muster so I’m going to deal with these concerns head-on. You’ll get all the facts … [Read more...]