By month: March 2014
Making tax-deductible charitable contributions has become more difficult with each passing year. Two culprits make things messier than in years past. First, lawmakers have enacted more rules that you need to follow. Second, the Internet offers you opportunities to make donations that don’t qualify for tax deductions. That’s the bad news, but there is plenty of good news when you do this right.
Once you borrow money from your life insurance policy, you need to pay attention and ask some questions. First, are you using the loans for a business purpose? Second, are you repaying the loans? Third, if you’re not repaying the loans, what happens when the loan balance causes the insurance company to terminate your policy? If you know what happens, you’re prepared. But if you don’t know what happens, you’ll be unhappy when you receive your tax surprise.
Are you a recreational gambler? If so, you likely know that you are required to keep income tax records that prove your gambling winnings and losses. If you don’t have the records, your winnings are taxable and your losses nondeductible. Holy smokes! That’s terrible. Don’t let that happen. See why you need the records. Learn what the IRS and the courts say your records must show. Spend a little time with this article so that you can avoid overpaying your taxes on your gambling activity.
Have you considered the possibilities of turning the monies you send to charities into business expenses? You should. It can save you tax dollars. Sure, you might already be deducting the money now as charitable deductions. But wouldn’t you really rather achieve the tax deductions as tax-favored business expenses?
In this article, part 5 of the entertainment facility discussion, you learn how lawmakers take shots at your hunting activities. First, both real and personal property involved in your hunting activities face the entertainment facility disallowance rules. Leasing land for the hunt has its problems too. But if you like to hunt, and if you would like to learn how to deduct your hunting, this article is for you!
You can create losses without selling assets when you liquidate your S corporation. But be warned: you first need to know exactly how the gains and losses are going to flow. In this article, you see the hurdles erected by lawmakers and the IRS. You learn what you need to know. With this knowledge, you can plan. That plan might include or exclude liquidation. It depends on where the liquidation chips fall.
Don’t be a victim of your own success. When you operate two businesses, one that is profitable and one that is not, the IRS likes to attack the deductions of the losing business. When the IRS attacks, you are in for a fight. But it’s a fight that you can win with knowledge and planning.