The tax law used to help a lot of people by letting them deduct the cost of mortgage insurance. But times change, and in 2013 many of these deductions were no longer allowed. How does the current law treat deductions for government or private mortgage insurance on homes, rentals, and home-offices? You’ll find out when you read my new article titled Tax Tips: When You Can … [Read more...]
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How to use corporate advances to avoid double taxation
Do you own a C corporation? If you do, you have a nasty double-taxation problem. EXAMPLE: Let’s say your corporation has $10,000 of profits after paying your salary and other expenses. If you want to use that money for personal purposes, you have to: Pay the corporate tax on the income And pay a dividend tax on the transfer from the corporation to your personal bank … [Read more...]
How the IRS treats life insurance policy loans
Thinking about borrowing money from your life insurance policy? Before you do, you’d better ask yourself these three important questions… Am I using the loans for a business purpose? Am I repaying the loans? If I’m not repaying the loans, what happens when the money I’ve borrowed terminates my policy? If you haven’t answered these questions and thought about the … [Read more...]
How to deduct mortgage interest on a tax-deductible home office
As you may know, the IRS limits the tax deduction (for the home-mortgage interest-deduction) to a maximum mortgage balance of $1.1 million. But what happens when you… Have a home office for which you claim tax deductions? AND Also have a mortgage in excess of $1.1 million? The answer can be tricky, which is why it’s worth reading my brand new article titled Tax … [Read more...]
Should you buy or lease your business vehicle?
Thinking about getting a new vehicle for your business? Then you have to make a tough decision… Should you buy or should you lease? Unfortunately, deciding which option saves you the most money isn’t always easy. Sure, you’ve got to consider out-of-pocket costs, but you also have to think about how much cash you have available, the tax benefits each approach provides, and the … [Read more...]