Important news! The IRS has just clarified the Section 105 medical reimbursement plan rules for deducting over-the-counter drugs in 2011. That’s right. In Notice 2010-59, the IRS clarified the new definitions and considers this guidance to have the force of regulations. If your business wants to stay in compliance with the 2010-2011 requirements, read our new article titled … [Read more...]
How to audit-proof your self-employed tax records
If you are audited by the IRS, will your deductions stand up to close scrutiny? If you take your case to court, will you come out a winner or wind up owing even more money? You’ll find answers to these important questions in our must-read new article titled Tax Audit Tips for Travel, Entertainment, and Education. Don’t miss it! Three ways our fact-filled article can help … [Read more...]
Tax tips for home ownership sale to your S corporation
Here’s an important question… If you’re up against the two-out-of-five-year rule (the rule that enables the $250,000 home-sale exclusion, $500,000 if you’re married), what’s the best tax strategy to use? You’ll find a detailed answer in the current issue of the Tax Reduction Letter. It’s titled Tax Tips For Home Ownership Sale To An S Corporation. Here’s your chance to read … [Read more...]
Tax tips on a failed rental property purchase
The government loves it when you make a lot of money. And why shouldn’t it? It gets to take a nice chunk of your income in the form of taxes. But what happens when you have some bad luck and don’t earn a whole lot? The government still loves you. When your attempt to make money fails, Uncle Sam allows you a tax deduction for your losses. Our new article titled Tax Tips … [Read more...]
Why a tax audit of your C corporation may be in your future
Watch out! After receiving budget increases in 2009 and 2010, the IRS is in the midst of its largest hiring initiative in recent years. The result? They’ll have scores of new revenue agents auditing small-business C corporations. What’s the threat to you? How can you protect yourself? You’ll find answers in our must-read new article titled Tax Tips: Tax Audits of … [Read more...]