By month: June 2010
The IRS tax form for deducting the home office contains the gross-square-footage method and makes no mention of other permissible methods. This article shows you how the net-square-footage method works and why it is always superior to the gross method found on the IRS form.
Tax savings when renting to relatives depend on your compliance with the tax law’s fair-rent standards and your relatives’ use of the property. Violate these rules and you face the triple whammy of additional taxation.
The trade-in of your old business car on a replacement car creates additional basis. The subsequent trade-in can also increase basis. This process can create a big tax deduction if you know what to do.
One question that is often answered incorrectly, thus reducing tax benefits is the question: What is considered business income for the Section 179 expensing limit? Actually, the real problem is the assumption (and you know what they say about assuming) that I know what business income is. That assumption often limits Section 179 expensing to far less than what is allowed.
Doing business in two different locations requires tax knowledge. The purchase of a town house in the second location brings up many tax planning opportunities and a few hazards to avoid.
What happens when you locate an office (home office or other office) in a duplex or apartment building? It’s possible that this location can produce tax-favored depreciation for the home office.
To deduct business clothing, you must pass the condition-of-employment and not suitable standards.