Claiming Section 179 expensing can be a great way to save money on taxes. And no wonder. Section 179 lets your business take an immediate deduction for expenses on certain depreciable assets. But watch out! If you handle your Section 179 deductions the wrong way, you can face some expensive consequences! Specifically, if you violate the agreement you make with the IRS … [Read more...]
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What Is the Unpardonable Sin in an IRS Audit?
You get the mail. You go through it quickly. And then you come to an envelope from the IRS. As your heart rate increases, you open the letter. Then the nightmare begins. The letter says that you’re going to be the subject of an IRS audit. IMPORTANT: When you go in for your audit remember these three things: Go to the bathroom before you go in to meet your … [Read more...]
Case Study: Trade-In on a New SUV—Reimbursement by Corporation
Meet Joyce. She just decided to trade in her three-year-old vehicle for a shiny new SUV. Sounds like a straightforward transaction, doesn’t it? … but it isn’t! You see, Joyce operates her business as an S corporation and wants the corporation to reimburse her for depreciation and even bonus depreciation. That’s when things get tricky. You see, the Tax Cuts and … [Read more...]
Tax Loophole Allows Tax-Free COVID-19 Payments to Employees
___________________________________________________________I hope this issue of the Tax Reduction Letter finds you and your family in good health. Warmest good wishes at this difficult time from all of us at the Bradford Tax Institute.___________________________________________________________ Here’s good news right in the middle of bad times. Because the COVID-19 … [Read more...]
Don’t Waste Donations on Your Church or Charity; Use Your Business
Yes. You deserve credit for making donations to your place of worship, school, or other 501(c)(3) charity. But you deserve even more credit if you know how to be charitable and take full advantage of the tax law. You see, if you make your donation as a business expense, you can help your favorite charity and get a valuable tax break for yourself! Want to find out how to … [Read more...]