There are many unfair IRS rules that badly hurt taxpayers. Perhaps the worst of the lot are the “hobby loss” rules. Here’s the story… If your business has produced losses in multiple years, you’ll want to use these losses to offset your other taxable income. But if the IRS decides your business really isn’t a business at all, but instead is a mere “hobby,” you’ll lose your … [Read more...]
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Selling your business? Prepare for “due diligence”
If you’re going to sell your business, your prospective buyer will want to check things out carefully before they sign on the dotted line. This investigative process is called “due diligence” and you can’t blame the buyer for wanting to examine the merchandise carefully. The last thing they want is exposure to your business’s liabilities (known or unknown). Want to know … [Read more...]
Do Not Make This Mistake When Your Second Business Loses Money
If your second business or third business is losing money, you know what pain is. But don’t add to your troubles by losing the chance to claim an immediate tax deduction. And that’s easy to do if you don’t show the IRS that you are “materially participating” in all your businesses. We’ll tell you how to get all the deductions coming to you, and make the best of a bad … [Read more...]
How to increase your home office deduction
If you have a home office, be careful! IRS Form 8829 gives you the impression that you should only use the gross-square-footage method for computing your home office deduction. Not true! We’ll show you a way to compute your deduction that’s always superior to the gross-square-footage method. Want to find out how you can legally wind up with more money in your … [Read more...]
Audit-proof your vehicle and entertainment deductions
A letter arrives in your mail box. It’s from the IRS. It seems they want to go over your vehicle and entertainment deductions. What’s that? You can’t back up all your deductions with a detailed log and an organized file of receipts? Well then, welcome to a world of pain. If you want to avoid getting crushed by an IRS audit, now is the time to act! What’s the first step … [Read more...]