Did you know your business losses can be suspended under the “passive activity loss” rules? Don’t panic. It’s “grouping” to the rescue. So what’s grouping all about? It’s a strategy for owners of several businesses. A proven strategy that lets you enjoy all the benefits of the intricate passive-loss rules. The basic strategy involves grouping your business activities … [Read more...]
Tax Planning
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Deducting Mortgage Interest When Your Name’s Not on the Deed
Do you live in a house owned by someone else, but it’s you who pays the mortgage? Can you still deduct the valuable mortgage interest? Absolutely! But you have to know the rules and follow them carefully if you want to come out a winner. You can come out a winner because the tax law is surprisingly fair when it comes to mortgage-interest deductions. Want to find out … [Read more...]
It’s Tax Filing Season—Mail Correctly To Avoid IRS Trouble
Are you sending documents to the IRS? Make sure they arrive by the required deadlines. Miss it and you’ll suffer. The song says, “Get me to the church on time.” The IRS says, “Get your documents to me on time.” And if you don’t, you’ll have to pay plenty and endure a lot of pain. That’s why this issue of my Tax Reduction Letter makes must reading. It shows you how to … [Read more...]
Partnerships with Multiple Partners: Tax Pros and Cons
Are you going to run a business with multiple partners? Then know the tax consequences! Yes. There are several big benefits of forming a partnership. For example, your share of gains, deductions, losses, and credits can be passed through to your personal return. But...there are dangerous pitfalls too, which can hurt you badly. I’ll explain both sides of the coin, … [Read more...]
How to Avoid a Payroll Tax Nightmare
Careful! Handle payroll taxes the wrong way and you could end up in an IRS agent’s office. Here’s some good advice that can help you avoid a whole lot of pain. Never deal with taxpayers who don’t remit payroll taxes to the government. If you do, you could wind up paying a huge penalty, even if what you think you are is an innocent bystander. That’s what happened to a … [Read more...]