By month: June 2014
IRA rollovers are dangerous. In a recent court case, a judge overturned a long-standing rule on IRAs, subjecting the taxpayer to income taxes, a 10 percent penalty, and an additional 20 percent penalty! Learn how the court made a new rule that you want to avoid, and then discover an alternative method for your retirement funds that completely eliminates the danger.
If you are looking for creative ways to get rid of a house that won’t sell, consider the lease-option. This strategy only works with the right tenant and your correct use. But get this right and it’s a nice deal for everyone involved. Make sure you avoid the traps that blow up the deal and add extra taxes to your tax bill. After all, your real purpose with the lease-option is to increase your cash flow and keep your taxes to a minimum.
Tax law allows you to have fun at work—in fact, your fun can earn you new deductions. Your can deduct your fun “entertainment” expenses ranging from fishing, hunting, and dancing to fashion shows or whatever you find enjoyable. What’s the catch? You have to mix just the right amount of business into your fun. Fortunately, the law tells you exactly how. This article passes along the information you need to deduct fishing trips and similar activities.
Have lawmakers inserted any sleight of hand into your Form 1040 tax calculations? Yes, they have! And it’s really terrible. For example, the alternative minimum tax (AMT) rules make you pay taxes on your tax deductions. How’s that for true sleight-of-hand terribleness? The AMT even makes you pay taxes on the personal exemptions the regular tax law grants for your children. It’s outrageous. But, because you own a business, there are some things you can do to get even.
Lease or buy? That’s the question you often face when you want to replace your business vehicle. To help you get maximum tax-deduction benefits should you decide to lease, examine the three often overlooked tax deductions in this article.
Good tax planning these days includes planning for your children as old as age 24. They may be subject to the kiddie tax, which can skyrocket their tax rates, even on investments they received from grandma and the ones they created themselves from their own income. If you have children under the age of 24, read this article to learn when the kiddie tax applies and to see what strategies you can use to reduce or completely eliminate the kiddie tax.
When a situation outside of your control forces you to sell your house, you will have a lot of things on your plate, not the least of which are tax concerns about the sale. Fortunately, there is a friend you can turn to—the IRS. In one of its rare moments of sympathy, the IRS may lend you a helping hand and lower your tax burden if you can show that you are in a difficult situation.