By month: July 2007
Make Sure the New 2007 Business Vehicle Luxury Limits Don’t Stick It to You
The government penalizes you if you drive a luxury vehicle. Further, the government’s idea of luxury and the reality do not match.
New Law Changes Kiddie Tax to Destroy College Funding Strategies
Lawmakers wiped out tried-and-true tactics for getting the government to help with the cost of your child’s college with the new tax law in 2007. You can do a lot to mitigate the damage if you get after this problem right now.
Lack of a Time Sheet Kills the Section 105 Plan
If your spouse is working for your company, you need proof that s/he is a legitimate employee. It is not hard, but you need to have good, solid proof to ensure that your deductions and medical reimbursements will be honored by the IRS.
Who-Paid-the-Bills Mystery Sinks Section 105 Plan
Learn about one couple’s problems with Section 105 medical reimbursement. You must document all payments. The reimbursement of the employee-spouse for every medical bill is easily done and a audit-proofing tactic. Make this an absolute requirement.
Expense Allowances Can Be Dangerous
Save yourself time and trouble. Reimburse employees for actual expenses. Forget those two troublemakers: per diems and allowances.
Taxation of Social Security
Be alert to, and beware of, government studies. The result of a tax study is almost always bad news for you. In this case, we foresaw the problems with the 1986 tax “reform.” What’s on the radar next: the new social security study group and the AMT.
Incorporation to Increase Business Mileage
The best strategy for this subscriber: do nothing. He is considering forming a corporation, but we think that will not help him with what he wants to do. Sometimes the best solutions are the easiest.
Coaching Girls’ Softball
One couple coaches a girls’ softball team and puts up advertisements for their company. It is a good strategy that is good for business. We show them how to deduct coaching expenses like bats, balls, tees, and a pitching machine.
