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...]
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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...]
Conflicting IRS rules for deducting your business gym
Thinking about setting up a tax-deductible gym for your employees? That makes a lot of sense. They’ll appreciate the chance to stay fit. And appreciate you for providing a wonderful fringe benefit. But be careful. Ever happy to confuse you, the IRS has created two different sets of regulations from two conflicting code sections. Want to make sure you follow the right … [Read more...]
Tax reform update on business-meal deductions
Should you continue to deduct your client and prospect business-meal expenses in the face of recent changes in the tax laws? My answer is a resounding “YES!” Oh, I know. A while ago I wrote an issue of the Tax Reduction Letter titled “Yes, Tax Reform Did Kill Prospect And Client Meal Deductions.” This means you might reasonably wonder if I’m changing my tune. Not at all. … [Read more...]