Here’s good news if you’re self-employed (or are an employee) and live and work abroad … You may be able to exclude most, if not all, of your earned income from United States taxes. That’s right. If you take advantage of the “foreign earned income exclusion,” you can avoid taxes up to $101,300 of 2016 earned income. And that’s just for starters. Want to find out more … [Read more...]
Tax tips for using your frequent flyer miles, hotel points, and credit card rewards
I’ll bet you’ve been building up quite a stash. I’m talking about all the frequent flyer miles, hotel reward points, and credit-card cash rewards you’ve accumulated. The important question here is, what are the tax implications of using all these rewards? Should they be treated as income? Are they taxable? Are they deductible? You’ll get straight answers when you read … [Read more...]
Sell your SUV using a 1031 exchange
Thinking of selling your SUV and buying a car with the proceeds? Then you should consider using a 1031 exchange. You see, this tax-payer friendly section of the tax code allows you to avoid paying current-year taxes on the sale of your old SUV when followed by the purchase of a replacement vehicle. Want to find out how to put a section 1031 exchange to work for … [Read more...]
Deduct the cost of “emotional support” animals
Coping with depression, anxiety, or other mental conditions can be difficult indeed. Often, an emotional support animal can provide important comfort and assistance. The IRS recognizes this. So if you qualify, you can deduct the cost, training, and maintenance of your companion animal. Want to get all the details? Read my new article titled Tax Tips: Can Your Emotional … [Read more...]
Audit-proof your vehicle and entertainment deductions
A letter arrives in your mail box. It’s from the IRS. It seems they want to go over your vehicle and entertainment deductions. What’s that? You can’t back up all your deductions with a detailed log and an organized file of receipts? Well then, welcome to a world of pain. If you want to avoid getting crushed by an IRS audit, now is the time to act! What’s the first step … [Read more...]