Claiming Section 179 expensing can be a great way to save money on taxes. And no wonder. Section 179 lets your business take an immediate deduction for expenses on certain depreciable assets. But watch out! If you handle your Section 179 deductions the wrong way, you can face some expensive consequences! Specifically, if you violate the agreement you make with the IRS … [Read more...]
What Is the Unpardonable Sin in an IRS Audit?
You get the mail. You go through it quickly. And then you come to an envelope from the IRS. As your heart rate increases, you open the letter. Then the nightmare begins. The letter says that you’re going to be the subject of an IRS audit. IMPORTANT: When you go in for your audit remember these three things: Go to the bathroom before you go in to meet your … [Read more...]
Best Choice: De Minimis or 179 Expensing—or Bonus Depreciation?
Hey taxpayer… COME ON DOWN!!! Today we’re going to play the exciting Tax Cuts and Jobs Act (TCJA) game! If you choose the right door, you could win the grand prize of a huge tax break! Ready to play? Okay. Let’s go! Behind door #1 is bonus depreciation. It’s a great way for you to deduct 100% of certain business assets. This can get pretty complicated so before … [Read more...]
Case Study: Trade-In on a New SUV—Reimbursement by Corporation
Meet Joyce. She just decided to trade in her three-year-old vehicle for a shiny new SUV. Sounds like a straightforward transaction, doesn’t it? … but it isn’t! You see, Joyce operates her business as an S corporation and wants the corporation to reimburse her for depreciation and even bonus depreciation. That’s when things get tricky. You see, the Tax Cuts and … [Read more...]
Raise Hell: Help Lawmakers Make PPP Expenses Tax Deductible
Yes. The Payroll Protection Program (PPP) is a tremendous help to businesses affected by the COVID-19 pandemic. As you may have discovered for yourself, it’s great to see PPP money flowing into your bank account. What’s not so great are IRS loan-forgiveness rules that, frankly, are very unfair. We’ll give you all the details when you read the full article titled Tax … [Read more...]