Here’s good news for small-business owners! Because your cars, SUVs, trucks, and vans are large-ticket business expenses, they can generate enormous tax deductions for you! In fact, these deductions can add up to tens of thousands of dollars, if you act by the end of the year. Yes. Time is running out, but you can still create highly profitable year-end business tax … [Read more...]
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A creative way to slash self-employment taxes
Do you operate your business as a sole proprietorship? If the answer is “yes,” you know that Uncle Sam takes a big share of your profits in the form of self-employment taxes. But there’s good news… With the help of your spouse, you can reduce your self-employment tax bill by using an innovative but simple rental strategy. You see, if you rent an office from your spouse, you … [Read more...]
How to protect your kids from the “Kiddie Tax”
Lawmakers created the “kiddie tax” to prevent you from slashing your tax bill by shifting income to your children (who usually are in much lower tax brackets). IMPORTANT: The tax once applied only to kids under the age of 14. But this odious tax can now apply to investment income of children under 24! Want to learn how to avoid kiddie tax problems and actually make the tax … [Read more...]
How to avoid the IRS’s “hobby-activity” trap
If you’re running a second business and making a genuine effort to be profitable, the IRS is pulling for you. (They want you to pay taxes.) But if your second business was really created for the purpose of deducting personal expenses, you could be walking into a dangerous trap… the hobby-activity trap. You see, the IRS will define your pseudo-business as a hobby and attack … [Read more...]
S corporations! Save money using income shifting
What’s the perfect gift for family and friends? Stock in your S corporation! That’s right. If you handle things correctly you can save over $6,000 in taxes (versus giving the same dollar-amount in cash.) Until recently, this income-splitting strategy only worked when you gave stock to adults. But because of provisions of the new Obamacare tax law, you now get a benefit … [Read more...]