It’s a sad fact… The Tax Cuts and Job Act took a big bite out of a bunch of valuable business-meal and entertainment deductions. One really nice one that that took a 50-percent hit was the “supper money” deduction. What is that? It’s the fringe benefit that lets you provide your employees (and yourself!) with tax-free meal money when you’re working late. That’s right. … [Read more...]
Tax reform attacks IRA “recharacterization”
Thinking about moving your retirement money to a Roth IRA? Be careful before you do! You see, when you convert a traditional IRA to a Roth IRA, and then reverse the transaction (by switching the account back to traditional IRA status), the reversal is characterized by the IRS as a “recharacterization.” If you have a sizable accumulation in your traditional IRA, the … [Read more...]
Tax reform’s effect on partnerships and LLCs
The Tax Cuts and Jobs Act made a number of changes that affect multi-member partnerships and LLCs. Most of these changes will put a smile on your face, but a few may cause some frowns. How will your business fare under the new law? We’ll tell you the good, the bad, and the ugly when you read my new article titled Tax Tips: TCJA Changes Affecting Partnerships and LLCs and … [Read more...]
Tax tips. How to safeguard your home-sale exclusion
Yes. The times they are a-changin.’ Sometimes for the better and sometimes for the worse. Here’s an example of a change in the tax law that could cost you big money if you’re not paying attention… The days when you could convert your rental property or vacation home to a principal residence, and then use the full $250,000/$500,000 home-sale exclusion to avoid taxes, are … [Read more...]
Technique That Increases Deductions on Your Vacation or Other Second Home
Would you like to dramatically increase your second-home deductions by thousands of dollars? Well, keep reading because the Tax Reduction Letter has turned up a perfectly legal, court-approved strategy that can put a lot of money in your pocket. What’s that? You haven’t heard about this before? This should come as no surprise. You see, the IRS doesn’t mention this … [Read more...]