By month:July 2007
The government penalizes you if you drive a luxury vehicle. Further, the government’s idea of luxury and the reality do not match.
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.
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.
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.
Save yourself time and trouble. Reimburse employees for actual expenses. Forget those two troublemakers: per diems and allowances.
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.
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.
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.
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