As we explained in a past issue of the Tax Reduction Letter, a spousal partnership can save you a lot of money on taxes. More money, in fact, than a sole partnership or S corporation can. But some of our readers have asked us if an IRS attribution rule (that applies to spouses who conduct passive activities) kills the spousal partnership strategy. Our answer is an emphatic … [Read more...]
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To cut your taxes, make your spouse a business partner
Are you running your business as a sole proprietorship or S corporation? Then I’ve got important news for you… Thanks to recent tax reform, a properly structured spousal partnership can actually serve as a better choice of business structure. If you want to learn how adding your spouse as a partner in business can significantly cut your taxes, read my new article titled … [Read more...]
Q&A: 100% Deduction for Long-Term Care Insurance with 105-HRA
I’ve got great news for you if you’re… Married and operate your business as a sole proprietor, with no employees [OR] Married and operate your business as a single-member LLC, taxed on Schedule C of your Form 1040 and have no employees If you are in one of these two groups, I urge you to consider hiring your spouse and create a 105-Health Reimbursement Arrangement (HRA) … [Read more...]
Tax reform says get divorced now. Don’t wait.
Are you thinking of getting divorced? Will you be paying alimony? If you’re answering “yes,” I suggest you act this year. Why? Because tax reform has changed the alimony game, and if you split up after 2018, you could wind up paying double the alimony. Sure, divorce is painful. But having to double your alimony payments makes a difficult situation even worse. To … [Read more...]
Slash Self-Employment Taxes By Renting From Your Spouse
Do you operate your business as a sole proprietor? If you do, you know that Uncle Sam helps himself to a big chunk of your profits in the form of self-employment taxes. To be specific, he’s taking a full 14.13-percent! (That’s 92.35% of the published 15.3 percent because there’s a reduction on Schedule SE.) But hang on a second. There is something you can do to … [Read more...]