Good news! Under IRS rules, your vacation home can avoid the dreaded “entertainment facility” disallowance rules. But you have to know exactly how to meet the law’s detailed requirements. In Part 4 of this series on entertainment-facilities, you’ll learn how to use the business-meeting and overnight-lodging rules to turn your cozy vacation home into a cozy tax-deductible … [Read more...]
Vacation Homes
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Using your personal car for S corporation business
Here are four questions every S corporation business-owner needs to answer: Question #1: Is the vehicle you use for your S corporation business titled in your name? Question #2: Is the vehicle your spouse drives titled in her/his name? Question #3: Does your spouse use her/his personal vehicle for S corporation business? Question #4: If your vehicles are titled in your … [Read more...]
Don’t miss taking vacation-home “repair days”
A vacation home should be a place where you can relax carefree. But before you hit the hammock, you should know a little tax law… The tax treatment of your vacation home depends on two things: The number of days you rent it out at fair market value The number of personal-use days One way to get a nice tax break is to take advantage of “repair days.” You see, repair … [Read more...]
Why renting your home to your corporation works
Last month we published an article that got a lot of great feedback. In it, we explained… How a 14-day (or less) rental of your home to your S or C corporation can create tax-free income for you and deductions for your corporation. Some of our readers doubted that this strategy could pass IRS muster so I’m going to deal with these concerns head-on. You’ll get all the facts … [Read more...]
How to deduct a loss on the sale of a timeshare
When it comes time to sell your timeshare, you may not make a lot of money. In fact, in this tough economy your timeshare may actually be sold at a loss. If that’s the unhappy situation you face, you’ll need to know if you can deduct that loss come tax time. As is often the case with the tax law, the rules are pretty tricky. Which is why I urge you to read my brand new … [Read more...]