Do you keep a mileage log that can stand up to a careful IRS audit? You’d better have one because, as we explained in an article we wrote last month, an accurate, well-documented mileage log can keep you out of big trouble. Want to see how bad things can get if you fail to maintain one? We’ll tell you what happened to poor Therone Johnson, when you read the full … [Read more...]
Section 179
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Don’t Let Section 179 Recapture Hurt You
Claiming Section 179 expensing can be a great way to save money on taxes. And no wonder. Section 179 lets your business take an immediate deduction for expenses on certain depreciable assets. But watch out! If you handle your Section 179 deductions the wrong way, you can face some expensive consequences! Specifically, if you violate the agreement you make with the IRS … [Read more...]
Case Study: Trade-In on a New SUV—Reimbursement by Corporation
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...]
2019 Last-Minute Year-End General Business Income Tax Deductions
Do you want to pay more business taxes than you have to? Of course not! That’s why you should check out the five business-deduction strategies we’re providing in this new issue of the Tax Reduction Letter. These perfectly legal strategies, that you can put to work in December, can help produce additional business tax deductions (and/or less taxable income) for … [Read more...]
2019 Last-Minute Vehicle Purchases to Save on Taxes
I’m an accountant, not a car salesman, but I want to make this high-pressure sales pitch right now… “My friends, if you need a replacement business car, SUV, van, or pickup truck, now is the time to buy!” Why? Because if you act promptly, you can take advantage of some extremely valuable deductions. But don’t forget … you have to own the vehicle and place it in service … [Read more...]