Do you have children who are thinking about withdrawing money from their traditional IRAs or savings to pay for college? Then stop them before they face stiff penalties! The culprit is the infamous “kiddie tax” that applies to all full-time students under twenty-four years of age. (That’s right. The IRS considers your twenty-three year old to be a “kiddie.”) Want to learn … [Read more...]
How to maximize vehicle-mileage deductions (Part 1)
Whether you’re running a corporation, proprietorship, or partnership, you want to claim the maximum mileage deductions possible. But be careful. You see, it’s extremely important to deduct only legitimate miles. If the IRS finds mileage-deduction violations, you’ll look like a tax cheat and potentially open the door to a detailed audit. No fun. So how do you deduct all … [Read more...]
How a little knowledge can save you in an audit
Most tax advisors serve their clients well. But that doesn’t mean that you should be ignorant of the tax law and passively accept all your tax professional’s advice uncritically. Hey. It’s your money and you need to be aware of what’s going on… especially if you’re called into an IRS audit. That’s what Mrs. and Mr. Smith found out the hard way. Read the full article. You … [Read more...]
S corporation health-insurance update
S corporation owners may remember that (for 2014, 2015, and 2016) the IRS allowed you to avoid the $100-per-day penalties on S corporation reimbursements for individually-purchased health insurance. But what about 2017 and 2018? What’s your health-insurance status now? The good news is that your 2017 and 2018 S corporation health-insurance treatment continues as before. And … [Read more...]
Four “safe harbor” steps to take now!
Don’t wait! Now is the time to put your 2018 safe harbor de minimis expensing election in place. Why is it so important to act promptly? Because making the safe harbor election in 2017 for 2018 can save you a lot of money and make your life much easier. You see, the safe harbor election eliminates the burden of: Tracking small dollar-cost assets Depreciating and/or … [Read more...]