Do you own a life insurance policy? If you do, there’s a fact you should know. FACT: The build-up of cash value in your life insurance policy, coupled with loans against the policy, can create a whopping, unexpected tax bill. If you want to learn when life insurance policy loans create taxable income, I urge you to read my new article titled Tax Tips: Life Insurance Policy … [Read more...]
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Don’t use your corporation as a piggy bank
Do you give money to your corporation, or take money from it, without leaving a detailed audit trail? Be careful! If you operate without the formal paperwork, and without the proper logging of entries, you can expect big trouble from the IRS and the courts. What can you do to prevent problems? For starters, I strongly suggest you read my latest article titled Tax Tips: Don’t … [Read more...]
Is the solo 401(k) right for you?
In Part 4 of our series on retirement plans for the one-owner or husband-and-wife-owned business, we take a close look at the solo 401(k). This flexible, defined-contribution retirement plan lets you take the largest deductions of the plans reviewed so far and offers several significant advantages. To find out more, don’t miss this important article titled Tax Tips: Best … [Read more...]
How to make loans the right way
If you make a loan and it goes bad, the IRS may step in and decide whether your loan was “real” or “fake.” The distinction is an important one. You see, real uncollectible loans give you tax-favored, bad-debt deductions. Uncollectible fake loans are deemed undesirable capital contributions and nondeductible gifts. If you want to audit-proof all your business and personal … [Read more...]