Do you have significant insurance needs? If you do, you should consider creating and owning a “captive” insurance company. Why? Because a captive insurance company could… Save you big money Create a substantial tax shelter Produce a nice pile of cash Want to find out if a captive insurance company makes sense for you? Read my new article Tax Tips: Captive … [Read more...]
Three traps rental-property owners should avoid
When it comes to deducting mortgage interest on your home, the tax law is pretty straightforward. But when it comes to deducting mortgage interest on your rental property, it’s a different matter entirely. You see, Uncle Sam has set some traps for you that can cost you big time. Want to learn how to avoid three major rental-property interest-deduction traps and come out … [Read more...]
How to avoid the “double tax” whammy!
Have you been claiming zero depreciation for your home office so you can avoid the depreciation recapture tax? That may be a big mistake. You see, the IRS has a rule that can force you to pay the recapture without giving you the actual depreciation deduction. Not good. Because if this happens to you, you’re going to pay a double tax. Want to avoid that nasty problem? … [Read more...]
How to convert business property to personal use?
Do you own rental property that you want to convert to personal use? Or how about proprietorship-owned property like cars, desks, and computers? Then be very careful! You see, when you make the conversion, you’re in danger of triggering the depreciation-recapture tax. And it can cost you plenty. Want to learn how to avoid this tax and keep more money for … [Read more...]
How coin, stamp, and baseball card collectors can keep the IRS happy
Are you a collector of coins, stamps, baseball cards, or other items? If the answer is “yes,” you should also start collecting some important tax information. For starters, you should know that your collecting activities will fall into one of four IRS-determined tax categories: Hobby Investment Trader Dealer Depending on how the IRS categorizes your collecting … [Read more...]