Do you hook or slice on the golf course? Don’t worry. No matter how well or poorly you play the game, when it comes to deducting your golf expenses, you can always sink a hole in one! That’s right. Uncle Sam will let you write off your golf expenses if you follow a few simple rules. And these same rules also let you deduct expenses for fishing, scuba diving, hunting, … [Read more...]
The truth about “defined-contribution health plans”
After the Affordable Care Act (Obamacare) became law, a bunch of ads have popped up on the web touting “defined-contribution health plans.” They’re billed as perfect for business owners who have fewer than fifty employees. The trouble is, the tax code makes no mention of defined-contribution health plans! FACT: These plans are purely the creation of marketers and can get you … [Read more...]
How to escape payroll taxes on S corp. health insurance
Good news! If you know the tax law… You can pay zero in payroll taxes on the cost of the health insurance fringe benefit — the benefit that your S corporation has to put on your W-2. That’s right. According to IRS Announcement 92-16, you don’t have to pay a penny in payroll taxes in certain situations. What are these situations? How can you use the tax law to keep more … [Read more...]
How the IRS can help you through tough times
I thought I’d never use the words “IRS” and “mercy” in the same sentence but I’m going to do so now… If circumstances force you to move out of your home before you qualify for the $250,000/$500,000 exclusion, the IRS will show you mercy and help you out. That’s right. In a rare moment of kindness, the IRS may lend you a helping hand and reduce your tax burden if you can show … [Read more...]
How to protect your kids from the “Kiddie Tax”
Lawmakers created the “kiddie tax” to prevent you from slashing your tax bill by shifting income to your children (who usually are in much lower tax brackets). IMPORTANT: The tax once applied only to kids under the age of 14. But this odious tax can now apply to investment income of children under 24! Want to learn how to avoid kiddie tax problems and actually make the tax … [Read more...]