By month: May 2013
Antique desks, clocks, cabinets, bookcases, rugs, conference tables, paperweights, and even cars can add character and beauty to an office. Antiques also make a great investment because they appreciate in value. And here’s one more neat thing about antiques: you can expense them under Section 179 of the tax code if you (1) actually use them to conduct business; and (2) such use causes wear and tear to the antique.
Do you operate your business as a corporation? Does the corporation own the business car? Do you drive the corporate-owned car or other vehicle for personal purposes? If so, you need to know how the IRS treats your personal use and what that personal use does to the corporate tax deductions.
When you attend a convention or similar meeting, your attendance automatically qualifies as you having a substantial and bona fide business discussion. When you precede or follow a substantial and bona fide business discussion with entertainment that takes place in a non-business setting such as going to Disneyland, you qualify to deduct the cost of the Disneyland tickets.
This article answers six questions about the big tax benefits to the sole owner of the S corporation who rents his personal residence to his solely owned S corporation for 14 days or less. The answers deal with (1) the need for a 1099, (2) how to report the 1099 on the 1040, (3) multiple corporations, (4) events for independent contractors, (5) events for employees, and (6) proof of fair rent.
The Federal Housing Authority (FHA) guarantees loans so that lenders can make mortgage loans with lower down payments, lower closing costs, and easier credit qualifications. When the mortgage crisis hit, the FHA changed the rules for mortgage companies that had independent contractors brokering FHA mortgages. The change allowed only W-2 employees to sell FHA loans, and thus many mortgage companies converted their brokers from independent contractors to W-2 employees. For many, this new W-2 status produces a totally unfair tax result that can be overcome with knowledge.
Do you own an office building or commercial retail building that you lease? Are you a tenant in an office building or retail space? Are you considering some leasehold improvements to the space? If so, you need to get your act together lickety-split, as time is running out on IRS-approved huge tax deductions for “qualified leasehold improvement property.”
Your ability to deduct a home office is straightforward until you allow your spouse to use the office or you add a second business to the mix. When your spouse uses the office or you add a second-business, your home-office tax deduction becomes more complicated.
Do you own your business? Do you pay parking for yourself? An employee? If so, you need to know how the tax-free fringe-benefit rules for parking work, as explained in this article.