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...]
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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...]
Does the Per Diem Expense Option Stick It to Business Owners?
If you run your own business and travel on business, the per diem option may look like a good deal. I get it. That’s because instead of keeping track of every dollar you spend on travel and lodging, you can deduct a fixed amount and call it a day. But be careful! There’s a business-owner per diem trap set for youthat you don’t want to fall into. What is it? How … [Read more...]
Avoid the Gift Tax—Use the Tuition and Medical Strategy
Are you going to have to pay gift and estate taxes? It you’re certain that you won’t have to, you may be dead wrong! You see, you may think that you don’t have a problem because your gift and estate taxes come to less than $11,580,000. (Or $23,160,000 for a married couple.) But here’s the reasonyou may be in for a shock… Lawmakers have already votedto drop the … [Read more...]