Thanks to Section 199A of the new tax law, you could wind up with a nice 20-percent deduction worth as much as $63,000. Or you could wind up with nothing. Zero. Zip. Why is your deduction at risk and what can you do to make sure you come out a winner? Here’s the answer. Take a minute and read my new article titled Tax Tips: Don’t Let the Cliff Kill Your New Section 199A … [Read more...]
Tax reform update on business-meal deductions
Should you continue to deduct your client and prospect business-meal expenses in the face of recent changes in the tax laws? My answer is a resounding “YES!” Oh, I know. A while ago I wrote an issue of the Tax Reduction Letter titled “Yes, Tax Reform Did Kill Prospect And Client Meal Deductions.” This means you might reasonably wonder if I’m changing my tune. Not at all. … [Read more...]
Don’t let business losses make you an IRS target
It’s a fact… The tax law has always treated your hobby activities unfairly. Now, tax reform under the Tax Cuts and Jobs Act has made things even worse. You see, thanks to this new legislation, you’re prevented from deducting any business expenses against hobby income. That’s right. Tax reform has turned your tax-law-defined, not-for-profit hobby activity into an unfairly … [Read more...]
Tax reform says get divorced now. Don’t wait.
Are you thinking of getting divorced? Will you be paying alimony? If you’re answering “yes,” I suggest you act this year. Why? Because tax reform has changed the alimony game, and if you split up after 2018, you could wind up paying double the alimony. Sure, divorce is painful. But having to double your alimony payments makes a difficult situation even worse. To … [Read more...]
Warning: Your “personal home” is not your “tax home”
“Home sweet home.” Sounds lovely doesn’t it? But if you’re not careful, Uncle Sam can turn things sour, fast. You see, the IRS makes a crucial distinction between your “personal home” and your “tax home.” And if you don’t know the difference between the two, and handle things the wrong way, you could lose valuable business-vehicle deductions. Want to make sure you stay … [Read more...]