By month: January 2015
Deduct the Shirt off Your Back—Yes, Here’s How You Can Legally Write Off Your Clothing and Laundry Expenses!
Sometimes it feels like the IRS wants everything from you, including the shirt off your back. At the Tax Reduction Letter, our team of researchers works every day to find ways to protect you from government overreach. We’ll be sure to help you keep your money—and even give you a deduction for that shirt on your back! Read this article to find out when the IRS allows you to deduct the clothes you wear in your business.
Three Rules for Contributing to Your Employees’ Health Savings Accounts and Beating the Dreaded 35 Percent Discrimination Tax
If you discriminate when you contribute to the health savings accounts (HSAs) of your employees, the IRS will make you pay a 35 percent tax on the total amount of your contributions. This tax can add up quickly, and if you have to pay it, you’ll kick yourself when you discover you can escape the tax entirely by following the three rules in this article.
Did You Miss Your S-Corporation Election Deadline—and Thousands in Employment Tax Savings? No Worries—Do It Now!
If you want to file your taxes for last year (2014) as an S corporation for the first time, you might be surprised to discover that the deadline to elect S corporation status has long passed. But if you didn’t file your election in time, don’t despair. By following the rules in this article, you can retroactively create your S corporation well after the deadline and get the full benefit of your tax savings.
The next time you plan a vacation, stop and think about how you could make it deductible. If you find a good business reason to visit that destination and you throw in enough business hours on the trip, you suddenly convert a nondeductible personal trip into a deductible business expense.
Twenty years after the Tax Court approved a strategy that grants you extra deductions for your second home, the IRS would like you to forget it ever happened. Even though the case remains current law, you won’t find any mention of this strategy in IRS guidance to taxpayers. Unless you just happened to know old cases—or read this article—you might never have known how you could save thousands in taxes on your second home.
How to Deduct Your Swimming Pool and Other Home Improvements as Medical Expenses—All Legal If You Do It Right
If your doctor recommends that you buy equipment for your health, pay attention. First of all, you should follow your doctor’s orders. But just as important, you may be able to deduct some or all of the cost. This article explains how the one-owner businessperson is in the best possible position to deduct the cost of medical equipment.
The IRA double-win strategy allows you to get a tax benefit when you first contribute to your retirement plan and then again when you withdraw the money. This article reviews how the strategy works and answers some member questions we received regarding the process.