Do you own a vacation home or condo? If the answer is yes, remember this… If you use your property for personal use and business lodging, you’re entitled to some valuable deductions. What’s more, you can avoid oppressive vacation-home, and passive-loss rules… rules that can cost you big money and big problems with the IRS. (NOTE: Because we’re in the midst of the … [Read more...]
Take Advantage of Partnership Special Allocations
Operating your business as a partnership can offer real advantages. This is also true for LLCs (treated as partnerships for tax purposes). Why? Because operating your business as a partnership or LLC gives you the right to make “special tax allocations” of tax items among the partners. Read the full article for details What is a special tax allocation? Partners … [Read more...]
COVID-19: Two New Retirement Account Strategies You Need to Know Now
Good news! The new CARES Act made several retirement-account (RMD) tax-law changes that can save you a lot of money. To take advantage of these changes, there are two totally-legal, powerful strategies that you can put to use. What are they? We’ll give you all the money-saving details when you read the full article. IMPORTANT: Be aware that the new rules apply only … [Read more...]
COVID-19 Tax Relief If You Work Abroad or Travel to the U.S. to Work
Let’s talk about geography… and taxes. If you live in a foreign country hit by the COVID-19 pandemic, you may have to return to the U.S. If so, you may worry that you’ll get hit with a huge tax bill for failing to meet the foreign earned-income exclusion requirements. Ouch!If you’re a non-resident alien who got stranded in the U.S. because of the COVID-19 pandemic, you too … [Read more...]
Is the EIDL Advance Taxable?
One of the important things we do at The Tax Reduction Letter is keep very close tabs on IRS guidance. I’m glad we do, because recently the IRS issued important guidance indicating that business expenses used to create Paycheck Protection Program (PPP) loan-forgiveness are non-deductible. This means that if you received an Economic Injury Disaster Loan (EIDL), you may … [Read more...]