Ronnie Craft learned an expensive lesson. You see, he inadvertently waved a red flag in front of the IRS which resulted in an audit — an audit that cost him every penny of his S corporation business deductions. Where did Ronnie Craft go wrong and how can you avoid his fate? You’ll find out when you read my new article titled Tax Tips: Tax Savings Trap Crushes S … [Read more...]
Tax-Smart Ways to Cash Out of your Real Estate Property
Yes. Section 1031 exchanges are a great way to avoid taxes when you’re acquiring bigger and better properties. But be aware! When the time comes to cash out, 1031 should not be used. What’s the best way to avoid taxes and keep cash in your pocket? There are three proven strategies you can take advantage of as you’ll learn when you read my new article titled Tax … [Read more...]
Beat the passive-loss rental-property rules
If you’re a savvy taxpayer, you want to deduct your business, rental, and non-rental losses whenever possible. Why? Because these deductions put cash in your pocket (which makes the losses easier to bear). But be aware. The passive-loss rules put your legitimate tax losses into a tax-loss prison and releases them only when you have passive income (or dispose of the … [Read more...]
Create Extra Cash by Using Depreciable Antiques in Your Business
Looking for an end-of-year tax break that can put big money in your pocket? Buy antiques you can use in your business. Why is this a smart move? Because you can depreciate or even Section 179 expense them. And you can benefit by creating tax-favored, long-term capital gains. That’s right. You can buy a desk, clock, rug, cabinet, bookcase, paperweight, conference table, … [Read more...]
Yikes! New IRS Audit Tool: The Form 1099-K Letter
The IRS is constantly looking for ways to nail tax-cheats and they’ve come up with a doozy. I’m talking about the 1099-K. This is the form that banks and others send to the IRS telling the IRS how much they remitted to you for your credit card, debit card, and similar transactions. The 1099-K reports the gross amount of transactions including credit-card sales, sales tax, … [Read more...]