Have your tenants made improvements to your rental property? If the answer is “yes,” you may be in line for some hefty monetary and tax benefits! You see, under Section 109 of the Internal Revenue Code, at the termination of a lease, the landlord gets the value of tenant (lessee) improvements completely free of taxes. Want to learn how to be a winner at this profitable game? … [Read more...]
Answers to questions about Section 105 medical plans
One of the wonderful things about writing the Tax Reduction Letter is that I often get really great questions from my many readers. I recently got an extremely interesting email from a couple who told me about their situation. Here’s their story… They both are 1099 independent contractors They both work for the same company, file their tax returns jointly, and each has … [Read more...]
How to make business entertainment 100% deductible
As I hope you know, when you take a prospect, colleague, or client to a sporting event, you can deduct 50% of your entertainment costs. No big surprise there. After all, other kinds of business entertainment can also be deducted at the 50% rate. What you may not know, however, is that: If you’re entertaining at a certain kind of “charitable sporting event,” your costs are … [Read more...]
How the IRS turns “Home Sweet Home” sour
“Home Sweet Home” is not a simple concept for the IRS. Nope. They delight in creating complications. Which is why they make the troublesome distinction between your “personal home” and your “tax home.” Depending on how you operate your business and where it’s located, you risk losing your valuable business vehicle deductions! Want to avoid crashing your business-vehicle … [Read more...]
A new way to calculate your home office deduction
If you’re claiming a home-office deduction, you know what pain is. You have to calculate, allocate, and prove all your home-office expenses to Uncle Sam’s satisfaction. But starting on January 1, 2013 the IRS began offering you an optional way to simplify the process and avoid jumping through all those hoops. Want to know if the new method for claiming a home-office … [Read more...]