Surprise! The IRS has some GOOD news for you. If you’ve set up your business as a C or S corporation, the IRS gives you a cell phone fringe benefit that’s not available to sole-proprietorships or single-member LLCs. Want to find out more? Easy. All you have to do is read my brand new article titled Tax Tips: Corporations Beat Proprietorships in Tax Deductions for Cell … [Read more...]
Does an S Corporation make sense for you?
When you’re choosing a tax-deduction entity for your business, there are many ways to go. You can set up your business as an S corporation, sole proprietorship, single-member LLC, or C corporation. But which one is right for you? Which meets your specific needs and goals? In my new article, the fourth in a series that began in November, 2011, we’ll take a close look at the S … [Read more...]
Get a double deduction for business entertainment
If you ever plow through the IRS tax laws the way we do, you’ll come across some mighty strange rules. EXAMPLE: Let’s say you participate in a skeet shoot for your favorite charity. What can you deduct for tax purposes? Interestingly, the deductions you get for participating in the charity skeet shoot beat both the regular business entertainment tax deduction and the … [Read more...]
The professional corporation as a C Corporation
Thinking about incorporating your personal service business? If you do, the IRS will likely consider your new corporation to be a “qualified personal service corporation” for tax purposes. In that case, tax brackets don’t matter and the hefty 35% flat-tax rate applies from the first dollar of taxable income. If you want to learn how to avoid paying taxes at this steep rate, … [Read more...]
How to use estate tax rules to avoid income tax
Want to create a tax-shelter that eliminates capital gains, recapture taxes, and gives your heirs a nice tax break? All you have to do is die. Oh, I know you may not want to rush to take advantage of this extreme tax strategy but you should know that keeping your home until death has distinct advantages. At death, your estate avoids both capital gains and recapture taxes, … [Read more...]