Operating your business as a C corporation, S corporation, or LLC can have its advantages — like limited liability protection. But there are things you have to watch out for. Exhibit #1: The related-party matching rule If you’re not careful this rule will put your business on the cash method for deducting payments to related cash-method taxpayers. The bottom … [Read more...]
How to avoid partnership tax filings
Yes. With partnerships come problems. For example, if you own an unincorporated business, you likely have a partnership for financial tax purposes. Which means you have to deal with extra tax-return filings and compliance headaches. But there is some good news. You see, there are two “elections” you can make to avoid partnership treatment and many jointly owned rental … [Read more...]
Arguing with the IRS: How the courts can help (Part 2)
Got a beef with the IRS? Want to fight the penalty they assessed? Then you need to rely on “authority” to come out a winner. I explained this in an article last month titled “Arguing with the IRS: You Need Tax Authority (Part 1)". In this issue I’ll explain the role of the courts when you take on Uncle Sam, and how they can help you beat the IRS. If you feel you’ve … [Read more...]
Send your child to camp. Get a tax credit.
Here’s some good news from the IRS… If you send your (under-13-year-old) child to summer camp, or a before-or-after-school program, you may be able to claim the child and dependent care tax credit. Of course, we’re dealing with the IRS so you have to know the rules. Luckily, we do, and we’ll show you how to play the game completely legally when you read my new article … [Read more...]
The gambler’s guide to beating the IRS
What do you like to bet on? Poker? Craps? Roulette? Whatever your game, Uncle Sam is waiting to take his cut when you win big. That’s right. Your gambling income is taxable and reportable, and by law, casinos must report substantial winnings to the IRS. Odds are you want to protect your winnings, which is why my advice is a sure thing. Don’t wait. Read my new article … [Read more...]