Are you paid commissions and taxed as an employee? If so, you could be a business owner under the common law classification system. “So what?” you might say. Well, we’ll tell you what, and it’s a lot! You are likely losing tens of thousands of dollars in business expense deductions each year. You may even think you are getting those deductions, without realizing that they … [Read more...]
Independent Contractor
Sorted by Date
How to avoid huge payroll taxes and penalties
Do you use “independent contractors” in your business? If you do, be very careful. You see, if the IRS rules that they’re actually employees, you could be on the hook for thousands of dollars in retroactive federal payroll taxes, interest, and penalties. What can you do to avoid these problems? Easy! Meet the three requirements outlined in Section 530 of the tax … [Read more...]
How to slash your unemployment tax bill
Want to save a lot of money next time you hire a new worker? Don’t hire them as an “employee.” Add them as an “independent contractor.” That status distinction can save you a bundle as you’ll learn when you read my new article. In fact, you can save literally thousands of dollars in federal employment and unemployment taxes by knowing how to play the game. But be careful. … [Read more...]
Beware of the stealth Alternative Minimum Tax
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...]
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...]