By month:January 2016

Unfiled Tax Returns? Back Taxes? IRS Penalties? Do This!

It’s not unusual for small-business owners to fall behind in their tax return filings. Often taxpayers fail to file in one year and then multiply that one year into several years of unfiled returns. In this article, we give you a road map for getting your individual, corporate, and payroll taxes IRS-compliant with as little tax as possible and the fewest penalties possible.

Fringe Benefits for an Employee-Spouse in an S Corporation

If you own an S corporation, you can provide your employees with all sorts of tax-free fringe benefits. Things get a bit more complicated if that employee is your spouse. But don’t fret—while some fringe benefits to your employee-spouse are off-limits, you still have a large selection of benefits you can take advantage of.

Act Fast: Install New Audit-Proof $2,500 Expensing ($5,000 with AFS)

Traditionally, tax rules put up major hurdles for small businesses seeking deductions for items such as furniture, computers, smartphones, and tablets. Now the IRS has made an important change that allows all businesses that have the right expense policy in place to elect expensing of these assets. This is a new and important change for 2016 and beyond, but you need to act fast to get this in place.

Q&A: Don’t Rent Home Office to S Corporation


Be Alert to Tax Rules That Destroy Mortgage Interest Deductions

Don’t let the home mortgage interest deduction rules surprise you by disallowing your tax deductions. This can happen in two places: your regular tax computation and/or the computation of the alternative minimum tax (AMT). But when you know the mortgage interest rules, you can plan to mitigate and often eliminate the loss of your mortgage interest tax deductions.

Tax Implications of a Deadbeat Tenant

You may have rental property with a tenant who is behind in his rent payments. A commonly asked question is how to account for this “lost income” if you don’t expect to recover it—ever. Another common question is whether you can still get the benefit of the usual tax deductions associated with rental property during that period for which the tenant hasn’t paid you. This article clears the dust on this important issue and shows you exactly how to record your income and expenses in this all-too-familiar scenario.

Q&A: Tax Deductions for a Gun Club


Has Your Swiss Banker Betrayed You to the Feds?

If you stash money in a Swiss bank account, you probably count on the bank to keep the account confidential. But the famed secrecy of Swiss bank accounts is rapidly crumbling, putting you at risk of staggering IRS penalties. You can put your money in a Swiss bank or in any foreign bank or entity. That’s not a problem. But not reporting those accounts to the feds is a major problem.

Selling Your Business: How to Make Tax-Saving Price Allocations for an Asset Sale

When it comes time to sell your business, you likely will face questions about selling the assets only. In this type of sale, you need to carefully consider the fair values of the assets you are selling and what you can do to influence those prices. You need to know how the law taxes each of the assets, including the hit you get from your previous depreciation deductions. The good news is that with this knowledge you can reduce the taxes and collect more after-tax cash.


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