You may think that you just bought a new vehicle. Or that you leased a vehicle from your local dealer. But you better be sure that the IRS agrees with you. You see, if the IRS finds that your lease is not technically a “true lease,” or that your purchase is not technically a purchase, you could owe additional taxes and big penalties. Don’t fall into this all-too-common … [Read more...]
How to deduct mortgage interest on a tax-deductible home office
As you may know, the IRS limits the tax deduction (for the home-mortgage interest-deduction) to a maximum mortgage balance of $1.1 million. But what happens when you… Have a home office for which you claim tax deductions? AND Also have a mortgage in excess of $1.1 million? The answer can be tricky, which is why it’s worth reading my brand new article titled Tax … [Read more...]
How to avoid the 50% business-meal disallowance rule
Let them eat cake!… but make sure they eat it on your business premises. Seriously, where you entertain, eat a meal, or hold business meetings matters a lot to Uncle Sam and determines how big a deduction you can claim. For example, if you go out and party with your employees, you can enjoy a 100% deduction. But if you have a genuine business meeting with your employees at … [Read more...]
Get the best deduction for your S corporation health insurance
If you own an S corporation, getting a deduction for your health insurance can be a tricky business. As you may have already discovered, the tax rules governing health insurance can be extremely confusing. Which is why I urge you to take a look at the easy-to-understand flow chart that I’ve created and featured in my new article. Want to see at a glance how to get the … [Read more...]
Rent your home to your corporation for tax-free income
If you operate your business as an S or C corporation, I’ve got some good news for you… Thanks to a little-known section of the tax code, you can rent your home to your corporation for business meetings, staff retreats, your summer employee picnic, etc. and receive that hefty rental income tax-free! That’s right. IRC Section 280A allows you to rent all or part of your home to … [Read more...]