When “cost recovery” replaced “depreciation” in the tax code, savvy business owners found that this can be a huge money-saver. You see, when that section of the law was enacted, it created new business deductions for business-use antiques and other assets, like gold, that can increase in value. But like anything else that involves the IRS, you have to know how to handle the … [Read more...]
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How to beat the self-rental deduction trap
Last month, I wrote an important article that explained how renting an office to your business can create a trap that crushes tax deductions. The solution to the problem that I outlined involved having your business own the building. This certainly solves the tax deduction problem but it opens up the building and your business to additional legal exposure. Is there a … [Read more...]
How to avoid the tax law’s “double whammy”
Should you buy an office and rent it to your business? Be careful! If you don’t know what you’re doing you could be engaging in a “self-rental” that limits your loss deductions and taxes your profits. In other words, handle things the wrong way and the IRS can get you coming and going. The good news? There’s a solution, and you’ll find out what it is when you read my new … [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...]
Is your offshore account on the IRS’s hit list?
Let’s face it. The IRS is not a big fan of offshore and foreign bank accounts. Which is putting it mildly. In fact, if you’re an American with an offshore account, you are at the top of the IRS’s hit list. And you really can’t blame the IRS for their concerns. Offshore and foreign bank accounts are often used to hide drug and terrorism money, launder money, and evade … [Read more...]