As we’ve mentioned in past issues of the Tax Reduction Letter, there’s good news for S corporation owners: Tax reform gives you a new 20-percent Section 199A deduction on pass-through income. But be aware… The IRS requires that you pay yourself “reasonable compensation.” If you don’t, you can torpedo your deductions and be forced to pay extra taxes and penalties. Want … [Read more...]
Hit with IRS penalties? Here’s how to pay $0
If you or your corporation files your tax return late, or fails to pay your taxes on time, you could face big penalties. Naturally, you’d think you’d have to pay them. Not true! When you know how to play the game, and learn which buzzwords to use when talking to the IRS, they will show you mercy and forgive those penalties. What’s the first step you need to take to avoid … [Read more...]
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...]
Tax reform expands your Section 179 deduction privilege
If you’re a regular reader of the Tax Reduction Letter, you know that the Tax Cut and Jobs Act can cause you some real pain. But in this article, we have good news — and here it is … Thanks to tax reform, you now have a more favorable and permanent Section 179 deduction for qualified assets placed in service starting in 2018. In fact, the new, improved Section 179 … [Read more...]
Tax planning for a winter in Florida, a summer in Massachusetts
Want to trade the cold winters up north for the warmth of your tax-deductible sunny Florida home? And in the summer, wouldn’t it be great to move back again to your cooler Massachusetts personal residence? You can do it and deduct your trips between the two locations if you know the tax law. We’ll explain three tax-planning basics that apply to these travels, whether … [Read more...]