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...]
Independent Contractor
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Deductions for your “entertainment facilities” (Part 2)
Last month we explained why it’s vitally important to know the law if you want to successfully deduct a beach house, ski chalet, yacht, hunting cabin, or other “entertainment facility.” In this article, Part 2, you’ll learn how to get a nice tax deduction when you use the facility as compensation to certain others. But, as always when you deal with the IRS, the devil is in … [Read more...]
How mortgage brokers can beat the AMT
When the Federal Housing Authority (FHA) made the Alternative Minimum Tax (AMT) apply to mortgage brokers, a lot of them got upset. Which should come as no surprise. You see, the IRS was disallowing business expenses on Schedule C and moving those expenses to the itemized deduction category. Of course, miscellaneous itemized deductions are not deductible for the AMT, so … [Read more...]
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...]
How to avoid payroll taxes and penalties
Did you goof and incorrectly classify an employee as an independent contractor? No need to panic. I can show you a perfectly legal way to avoid payroll taxes, penalties, and interest if you’ve incorrectly classified workers as 1099 independent contractors rather than W-2 employees. Want to find out more? I invite you to read my new article titled Tax Tips: New IRS … [Read more...]