Making loans to your corporation became a lot more hazardous back in 1986 thanks to the Tax Reform Act passed that year. But you ain’t seen nothin’ yet… The new Tax Cuts and Jobs Act makes things far worse for tax-years 2018 through 2025! We’ll tell you exactly what lawmakers did when you read my new article titled Tax Tips: TCJA Tax Reform Creates Big Hazard in Loans to … [Read more...]
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Tax reform sticks it to business startups that lose money
There’s a provision in the Tax Cuts and Jobs Act that we believe is terribly unfair to business start-ups and struggling business owners. You see, the rule prevents you from using all your business losses against non-business income if the losses are considered to be too large. (That determination is made by Congress.) If you want to find out how this onerous new law can … [Read more...]
2018 last-minute year-end stock portfolio tax strategies
If you have a stock portfolio, this issue of the Tax Reduction Letter makes must reading. Why? Because it explains how you can turn your portfolio into a year-end tax reduction machine. That’s right. If you know how to play the game, you can use IRS rules to dramatically slash your tax bill. And best of all, it’s easy to do. Sound good? It is good as you’ll learn when … [Read more...]
Defining “real estate investor” and “real estate dealer”
Here’s a good news double header… Good news #1: You can be both a real estate investor and a real estate dealer with respect to your real estate portfolio. This puts you where you want to be. In control. Good news #2: By knowing just a few rules about dealer/investor classifications, you can dramatically increase your net worth. Want to find out more? Read my new article … [Read more...]
Deductions for defunct S corporation expenses
Let’s say you closed your S corporation in 2016. Let’s also assume that you incurred unexpected expenses from your defunct S corporation in 2017 and 2018. Finally, let’s stipulate that you personally paid for them as the S corporation’s president and sole shareholder. Now comes the big question… Can you deduct those expenses? Now comes the big answer… Nope. You’re out … [Read more...]