As we’ve mentioned in past issues of the Tax Reduction Letter, there’s good news for S corporation owners: Tax reform gives you a new 20-percent Section 199A deduction on pass-through income. But be aware… The IRS requires that you pay yourself “reasonable compensation.” If you don’t, you can torpedo your deductions and be forced to pay extra taxes and penalties. Want … [Read more...]
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To cut your taxes, make your spouse a business partner
Are you running your business as a sole proprietorship or S corporation? Then I’ve got important news for you… Thanks to recent tax reform, a properly structured spousal partnership can actually serve as a better choice of business structure. If you want to learn how adding your spouse as a partner in business can significantly cut your taxes, read my new article titled … [Read more...]
Tax reform expands your Section 179 deduction privilege
If you’re a regular reader of the Tax Reduction Letter, you know that the Tax Cut and Jobs Act can cause you some real pain. But in this article, we have good news — and here it is … Thanks to tax reform, you now have a more favorable and permanent Section 179 deduction for qualified assets placed in service starting in 2018. In fact, the new, improved Section 179 … [Read more...]
Is your spouse robbing you of your 199A deduction?
Recent changes in the tax law provide a hefty 20-percent Section 199A tax deduction for lots of lucky taxpayers. But not for everyone. “In-favor” business owners are winners. “Out-of-favor” business owners are losers. What happens when an in-favor owner marries an out-of-favor owner? Does one spouse rob the other of their valuable 20-percent deduction? You’ll get the … [Read more...]
Beat some of the new limits on state tax deductions
Tax reform under the Tax Cuts and Jobs Act has put your state and local tax deductions in the crosshairs. Thanks to lawmakers, your federal deductions for state income taxes now can’t exceed a $10,000 ceiling. And that’s just for starters. But don’t lose heart. Once again the Tax Reduction Letter comes to the rescue with specific strategies you can use to keep more money in … [Read more...]