The Web is a fabulous invention, but the IRS has figured out how to use it against you. Here’s the story… For your rental properties, you need proof of your cost-allocation to land and depreciable building. If you don’t have proof of that allocation, the IRS has started using the Web to grab the tax assessor’s allocation and use that number to compute your depreciation … [Read more...]
Is your offshore account on the IRS’s hit list?
Let’s face it. The IRS is not a big fan of offshore and foreign bank accounts. Which is putting it mildly. In fact, if you’re an American with an offshore account, you are at the top of the IRS’s hit list. And you really can’t blame the IRS for their concerns. Offshore and foreign bank accounts are often used to hide drug and terrorism money, launder money, and evade … [Read more...]
Advantages of a Single-Member LLC
Should you operate your business as a corporation, proprietorship, or single-member LLC? In my new article, the second in a series, I’ll explain the advantages and disadvantages of the single-member LLC. This form of business organization provides corporate-level liability protection for the business owner plus taxation as a sole proprietorship. Want to find out more? Check … [Read more...]
How to avoid payroll taxes and penalties
Did you goof and incorrectly classify an employee as an independent contractor? No need to panic. I can show you a perfectly legal way to avoid payroll taxes, penalties, and interest if you’ve incorrectly classified workers as 1099 independent contractors rather than W-2 employees. Want to find out more? I invite you to read my new article titled Tax Tips: New IRS … [Read more...]
The IRS admits it got it wrong
Nobody’s perfect. Including (as if you didn’t know) the IRS. But when they make a mistake, the IRS admits it and this can be very good news for you. You see, in the past, the IRS said that after December 31, 2008, single-member LLCs were subject to corporate payroll tax treatment. Now the IRS and the Treasury Department admit that they did not intend to eliminate the … [Read more...]