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...]
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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...]
How to save money by paying more taxes!
No. It’s not a typing mistake. It makes perfect sense to pay more taxes this year if we do head over the fiscal cliff at midnight on December 31. As you probably know, the fiscal cliff refers to major changes in the tax law that will take effect starting January 1 if our lawmakers don’t get their act together. And these changes involve huge tax increases. Which means it may … [Read more...]
How to get a fat deduction for your timeshare
It’s a fact: You get the maximum tax benefit from a timeshare when you use it solely for business. But what happens if you use the timeshare for personal purposes only? The answer is, your timeshare can then qualify as a second home for purposes of the mortgage interest deduction. But be careful about renting out your timeshare. Doing so complicates things, generally … [Read more...]