By month: July 2019
Proprietors and Partners Mistakenly Pay Themselves Illegal W-2 Wages
Why is it wrong for the sole proprietor to pay himself or herself a W-2 wage? Also, why is it wrong for a partner to be paid by the partnership as a W-2 employee?
Secrets to Pocketing Cash by Renting a Bedroom in Your Home
If you want to rent one, two, or 20 bedrooms in your home, you need to know five sections of the tax law to obtain your rightful tax benefits. This is an area where tax knowledge is power. Without the knowledge, you could create a very unsatisfactory tax result.
Use a Single-Member LLC as a Tax-Smart Real Estate Ownership Vehicle
You find much beauty and little beast in using a single-member LLC for your real estate ownership. Of course, the big beauty is corporate-style liability protection without tax complexity, as you see in this article.
10 Proven Tax Reduction Strategies for the Self-Employed
We took a deep dive into the 263 strategy articles that apply to the self-employed and pulled out 10 that you should spend time with.
Impact of Death, Retirement, and Disability on the 179 Deduction
Have you purchased vehicles for use in your business? Did you claim Section 179 deductions on them? What happens to your Section 179 deductions if you retire or become disabled before the end of the vehicle’s useful life? What if you die? This article tells you what you need to know.
How to Deduct Cruise Ship Conventions, Seminars, and Meetings
If you want to attend a convention, seminar, or similar meeting onboard a cruise ship and deduct all your costs, you face some very special rules. It can be done. But when you know the tax code rules, you will find an enlightened workaround that removes almost all the hassle and gives you what you want.
Dealer Got Mad, Sent Customer a Fraudulent 1099 to Get Even
An auto dealer sent its customer a bogus 1099 because the customer refused to return to the dealership and redo the “no interest” loan to an interest-bearing loan. The dealer made a mistake originally and then wanted the customer to help fix the problem—at the customer’s expense. The customer said no. Later, when the bogus 1099 showing interest income from the no-interest loan showed up in this customer’s mailbox, the customer took this dealership problem to the IRS.
Advance Account Shows That Incorporation Is Not for Everyone
To operate successfully as a corporation, you need to be good at paperwork. Also, you may not treat the advance account on the corporate books as your personal slush fund.