Do you operate your business as an S corporation? If you do, you should be aware of a nasty catch-22 rule that the IRS has cooked up: Your S corporation may not deduct the cost of your health insurance as a fringe benefit… AND… if you pay for health insurance personally, you can’t deduct the cost as a self-employed individual! But don’t despair. There is a clever workaround … [Read more...]
How higher tax rates can increase rental property profits
Higher taxes mean lower profits, right? Wrong! Even though the American Taxpayer Relief Act of 2012 (and other tax-law changes) can mean higher taxes on your rental properties, you can still come out smelling like a rose. You see, the new, higher tax rates can actually leave you with more after-tax cash in your pocket. How does this work? We’ll explain this paradox and … [Read more...]
“To buy or to lease? That is the question.”
Hamlet asked, “To be or not to be?” But there’s another important question he should have asked… “To lease or to buy a new car?” The answer to this question is not an easy one. And if you come up with the wrong answer, you could end up paying a lot more than you should and miss out on some big tax savings. That’s why my new article is so important. It lists the ten factors … [Read more...]
Create a deduction for an “entertainment facility”
Do you use any of the following for business entertaining? yachts + hunting lodges + fishing camps + swimming pools + tennis courts airplanes + apartments + hotel suites + or similar facilities If you do, you may be able to deduct the use of these “entertainment facilities” and reduce your tax bill. But be careful! The IRS can be tough on these deductions which is why smart … [Read more...]
How to deduct that trip to sunny Jamaica
Ahh, Jamaica! There you are on that beautiful island for nine sun-drenched days. You’re there to work, of course, but you also want to spend time lounging on the beach with a Daiquiri in hand. Let’s interrupt this fantasy for a moment to ask a rather mundane and practical question. (I am an accountant after all!) “What part of this idyllic trip is deductible — and what … [Read more...]