In past issues of the Tax Reduction Letter, I’ve explained how you can rent your personal residence to your S or C corporation for fourteen days or less. Why would you want to do that? Because, as I’ve said, if you handle the transaction properly, you can get a tremendous double tax benefit… Your S corporation deducts the rent it paid you and then flows that lovely … [Read more...]
Here’s what every LLC owner needs!
Your LLC provides you with two important benefits: Limited liability Favorable tax treatment But be aware that your state’s LLC default rules and regulations govern your business as well as your members’ rights and responsibilities. Sometimes these rules are onerous, but don’t lose heart. Luckily, your state’s default rules can be overridden by an operating … [Read more...]
When to avoid a 1031 exchange
As you may know, a Section 1031 exchange can serve as a highly effective tax strategy. How? By helping you defer paying taxes. Always a good thing. What you may not know is that there are two times when a 1031 exchange can work against you. Want to learn how to steer clear of two traps the IRS has set for you? Read my new article titled Tax Tips: The TWO Times to … [Read more...]
Don’t make these vehicle deduction mistakes!
Are you new to business? If so, read my new article before you get in your car and drive off. Why? Because your valuable vehicle deductions can be in jeopardy if you’re not keeping the right kind of records. You see, if you show up at your tax preparer’s office without receipts for your car expenses and/or a detailed mileage log, your vehicle deductions could be … [Read more...]
Tax planning & noncompete agreements
When you buy a business, you don’t want the seller to turn around, create a similar new business, and start competing with you. Okay. That’s obvious, and you already know you’ll need a noncompete agreement. What you may not know is that noncompete agreements have very real tax consequences. Want to learn how the IRS treats your tax deductions as the buyer of a business … [Read more...]