By month:July 2013
The IRS created a new optional method that you can use to calculate the tax deduction for an office in your home. Obviously, this brings up a question: Does the IRS like you, or does the IRS hate you? The IRS reveals itself in this new optional method.
Depending on how you operate your business and where it’s located, the federal income tax terms “personal home” and “tax home” can have a big impact on your business vehicle deductions. And then there’s the difference between the federal income tax terms “business travel” and “business transportation” and how one rule applies when you are inside the area of your tax home.
As with other forms of business entertainment, taking a prospect, colleague, or client to a sporting event is deductible at the rate of 50 percent of costs. But, as this scenario illustrates, if the sporting event you and a prospect, colleague, or client attend is a certain type of “charitable sporting event,” your costs are 100 percent deductible.
This article answers Section 105 medical reimbursement plan questions from two 1099 independent contractors, a husband and wife, who work for the same firm but file separate Schedule Cs. The good news is that they can substantially increase their medical deductions by using a Section 105 medical plan where one spouse becomes the employer-spouse and the other becomes the employee-spouse.
Do your tenants improve your property? Should they? Under Section 109 of the Internal Revenue Code, landlords receive the tenant improvements at termination of the lease free of income taxes. “Tax free” is what you have to call a nice package of tax benefits.
Inheriting an IRA used to mean a heavy estate tax and federal income tax burden. But recent changes to the estate tax have significantly reduced this burden. Further, spouses have special income-tax planning techniques available that can make inheriting an IRA today a much happier experience.
Have you considered buying a personal seat license so that you can buy season tickets to watch your favorite football, basketball, hockey, baseball, soccer, or other team? Would you use the tickets for business purposes? If so, then you need to know if you can claim tax deductions for the cost of the seat license. This article tells you what you need to know.
[ View / Print full text of all articles in this issue ]