Continuous education can be extremely valuable for you and your employees. But when it comes to deducting the cost of continuous work-related education, the Tax Cuts and Jobs Act has proven rather unhelpful. In fact, the law has made some unpleasant changes you really need to know about. You’ll get a tremendous amount of timely, important information when you read my new … [Read more...]
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The IRS allows client and prospect business-meal deductions
Here’s good news from the IRS. You read that right. Good news! You see, in Notice 2018-76 the IRS states that client and prospect business meals continue as tax deductions under the Tax Cuts and Jobs Act. As we’ve mentioned in past issues of the Tax Reduction Letter, the Tax Cuts and Jobs Act eliminated entertainment deductions. But thanks to Notice 2018-76, that’s … [Read more...]
Audit-proof your time spent on rental properties
If you claim status as a tax-law-defined real-estate professional, you’ll be able to deduct your rental-property losses. But “claiming” that you’re a tax-law-defined real-estate professional is very different from proving that you are. And the IRS wants proof that you… Spend more than one-half of your personal service time in real-property trades or businesses in which … [Read more...]
Avoid Penalties—Give Notice of 2019 HRA Medical Plan on Oct. 2
Want to help your employees with their medical expenses? Then consider establishing a qualified small-business health reimbursement account (QSEHRA). It could be great for your employees and for you. IMPORTANT: Make sure your QSEHRA is in place on or before October 2! There are three reasons why you should act by October 2: Reason #1: You’ll avoid penalties Reason #2: … [Read more...]
How to survive a business-mileage audit
IRS auditors are human. (Despite what you may think.) This means that auditors aren’t always familiar with every nuance of the tax code and so occasionally get things wrong. For example, you may be keeping a 90-day mileage log, but your IRS auditor may disallow all of your auto expenses because you can’t provide a 12-month mileage log. And the IRS auditor would be be … [Read more...]